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China in Brief

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China, Potentially the World's Largest Market
.  Largest Market

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Life Today Seeking Better Nutrition

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The Market Economy and Currency Reform

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A Market Opening Towards The Outside World

Ten years ago a food parcel he received from his relatives in Shanghai had several packs of bundles resembling coiled springs. Reading the directions, he learned they were instant noodles. He envied the Shanghainese for obtaining such "luxury foods," but did not expect that in several years instant noodles would be popular across the country, as a cheap and convenient food for those on low incomes.

Since 1978 state and the local governments have invested several tens of billions of yuan developing the food industry.

Corn flour and sweet potatoes, poor people's staple foods in the past, are still seen in the markets, but are no longer the cheapest way to allay hunger. Well-fed people now feel it necessary to eat nutritious coarse foods such as these for a change in their diet.

In harsh yeas people preferred fat meat to lean meat. Now at the marketplace fat meat is ignored. Pig's head and sausage, popular in the past, have been replaced by processed meat products. Sea cucumber, squid, mushrooms, cloud ears and other delicacies, the "mountain and sea treasures," are more common on people's dinner tables. People don't care much about money, but value nutrition when buying food.

Instant and frozen meals are seen in more and more large markets. They are convenient and save time in a competitive society. Dazzling new name brands constantly appear on store shelves. One often hears shop assistants complaining about lack of space to display their merchandise.

According to data provided by the State Statistics Bureau for the first half of 1993, increases in food prices were only moderate. Prices for staple foods had dropped while costs of more selective items had gone up. In this period the average per capita expense for urban residents each month for staple foods was 83.3 yuan, 15.6% up from the same period the previous year. Allowing for price rises the actual increase was 2.3%. Per capita monthly expenses on grain were 9.5 yuan, 11.8% lower than the year before. The per capita monthly expense for non-staple foodswas 73.8 yuan a 4.1 percent increase, with meat, poultry, egg, milk, seafood, vegetables and sugar showing the biggest increases. Prices drooped for cigarette, tea, liquor, beverages and fresh and candied fruits.

The change in food consumption shows that having had enough to eat and wear, most Chinese have started to seek more healthy and nutritious food. Time-saving and healthy cuisine's have experienced a surge in demand.

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Fast food has also developed. In Beijing the growth of the industry went through three stages, starting out at the end of 1970s and beginning of the 1980s. The coming of Kentucky Fried Chicken, a leader among foreign fast food giants, into Beijing in the mid-80s marked a second stage of sudden expansion. Ethnic, sanitary and convenient foreign fast food and restaurant chains, such as Maxim's and "International Fast Food," and California Beef Noodles King (actually a Chinese franchise that appropriates the California name) have been very popular among Chinese. Chinese fast food stalls on the street are not so sanitary and the kind of Chinese snacks, some of them quite disappointing, have suffered in the fast food revoluti8on. The third stage was marked by the rise of sanitary Chinese fast foods centered around high cuisine, such as boiled and steamed dumplings, Sichuan flavoured noodles and Beijing roast duck. These businesses are now developing simultaneously with the capital's Western-style franchis es. Fast food outlets providing a variety of cuisines have developed. One opening in July 1993 offered American fried chicken, Japanese beef rice, Malaysian-style hamburgers, hot dogs, garlic bread, Singapore fish ball noodles and Chinese-style ribs and noodles. Here one need only spend 10 yuan to eat well.

Last summer, small kiosks selling hamburgers appeared almost overnight at 16 stops along Beijing's subway line. Set up by the Baiwanzhuangyuan Industrial Corperation, the stalls served pork, chicken and beef hamburgers at 2.6 yuan each, and other fast foods and drinks, from 6 am to 9 pm.

With a daily flow of 1.4 million people, the subway has provided a huge market for these kiosks. Since their opening, they have sold at least 10,000 hamburgers a day with each kiosk earning around 1,000 earning around 1,000 yuan, about 700 or 800 yuan for a day's business.

In 1987 a family in Beijing ate less than once per month on average. Now the average is 2.5 times a week in a restaurant somewhere. With 1.5 million families and a daily total of over one million people on their way to work in the morning and back home in the evening, Beijing has a huge market for its fast food and restaurant industries.

Colorful Clothing

January 1994 was extremely cold, but people's clothes were as colorful and stylish as in other seasons. In the frozen north, down jackets, woollens and fur overcoats in red, yellow, orange and other bright colors livened up the bleak winter scene. In the south, where the climate is more mild, people chose smart western suits, jeans, sporty jackets, sweaters and other fashionable clothing to wear year round.

In the past many people hated winter because of the monotony. In the summer they could wear silks, polyester and cotton clothing that were cool and attractive. In the spring and autumn they could wear soft wool and fashionable cotton garments, but in the winter they had nothing more than thick and cumbersome cotton-padded jackets to resist the cold. Their fashion sense was strangled by the weather. Now this has all been changed by many new, warm down coats and artificial furs. In any season people can step out in their carefully-chosen clothes and express their personality.

According to market experts, fashionable clothes have become the new trend in how Chinese buy what to wear. The market has all sorts of goods to meet the demands of different consumers. High quality clothes are of a famous brands and refined materials, while more cheap and practical clothing is also available. Famous name brands and fashions are a common sight in Beijing, and they sell quite well.

Figures from the Statistics Bureau show that Chinese now tend more and more to fashionable ready-made clothing. In the first half of 1993 urban citizens spent on the average 25.3 yuan per month buying clothes, 29.6% more than the same period in 1992. The percentage of money spent on clothing, out of a person's total lifetime expenditure, increased from 14.5 to 15.3 compared with the previous year. The increase in ready-made clothes was 33.37% and cloth sales was 20.5%.

On January 6, 1986, Time magazine , talking about reforms in China's southwestern province of Guizhou, wrote that people in central Guizhou could watch news from New York and Beirut on television in their own homes. Just three years before they didn't even know about people living on the other side of the mountains that surrounded their communities. There has been a rapid increase in consumer items for everyday use.

Mass consumption of color TV sets, refrigerators and other durable electrical goods in China indicates a change in lifestyles, from meeting basic needs to a comparatively well-off standard of living. This change is evident in the following story of how an ordinary family spends Its Sunday.

The couple works in the same factory. They have a six year old daughter. Soon after the wife gets up, she sits at her dressing table. There is a great number of beauty creams and cosmetics for sale in the shops. A survey on 200 urban women revealed their average expenditure on cosmetics every month was 3.1 yuan, 50% more than they spent three years ago.

After putting on some make-up the mother goes into the kitchen to prepare breakfast for her husband and daughter.

She still remembers how years ago the old honeycomb briquette stove had inconvenienced her when entertaining guest. She was so frustrated that whenever the second dish was ready, the first one would already be cold. Now she enjoys cooking with a gas stove. Cooking utensils have also changed. Aside from a traditional iron frying pan, she also uses aluminium, pressure, non-sticking, enamel and electromagnetic pots. The production of cooking utensils in China has developed into an industrial trade, with an output of eight million pressure cookers and about one million kitchen smoke ventilators each year.

While the wife is busy in the kitchen, the husband cleans the house.

In a few years the family has added a bed with a mattress, a set of matching furniture, a color TV, a refrigerator, a tapeplayer, an electric fan, two arm chairs, a washing machine and recently a VCR to the things that they own.

After breakfast it is the time for their daughter to practice her piano lesson. In 1982 electric piano output in China was less than 1,300, but now there are as many as eight million in homes across the country.

As living standards have improved, Chinese have spent more and more money on furnishings and appliances In the first half of 1993 urban dwellers spent an average of 14.8 yuan a month on these items, a 33.3 percent increase over the same period in 1992. The increase in durable articles purchased was 39.8 percent and other daily necessities 20.6 percent.

The increase in purchasing power and disposable incomes boosted China's production of electrical household appliances in the 1980s.

Even as late as the 1970s electric household appliances were only a dreams to many families. Only the wealthy were able to afford them and almost all were imported from abroad. In 1980 China's electric household appliances output value was only 860 million lyuan. In 1992 it reached 38.21 billion yuan, an increase of 44 times. Between 1980 and 1992 the output of refrigerators, washing machines, electric fans and air conditioners increased 126,28,7.7 and 114 times respectively. The past decade saw China's production of electrical household appliances developing at an unprecedented speed in the world economy, and the country has become a leader in the manufacture of electric appliances.

By 1985 the demand for household appliances hit a new level, which in turn brought the industry into a period of unprecedented development. Small household articles, such as hot water shower devices, kitchen smoke ventilators, ultrasonic sprayers, electric sterilization cupboards and electric heater now have become popular in cities throughout the country.

Though the state has satisfied the domestic demand for electric appliances, it still finds excessive demand in rural areas. For example, the popularization for refrigerators is only 15 percent across the country. To reach the goal of advanced living standards by the year 2000, China needs to sell seven million refrigerators annually to its own population. The popularization of washing machines in the countryside is no more than 13 percent. The figure is 85 percent in he cities, but most of the machines are approaching that age where they will need to be replaced. It is predicted that sale of automatic washing machines will increase at an annual speed of 30 percent. At present popularization of air conditioners in urban areas is only 1 percent. By the year the popularization ratio should rise to 25 percent among 80 million households, meaning that in coming years air conditioners will be in great demand. Farsighted international enterpreneurs have seen in China the world's largest potential market for electric household appliances


Consumption patterns in the Chinese market have changed considerably with the introduction of new expenses into mainly people's budgets, namely in the shape of increased telephone calls, bus and taxi fares and other rises in transportation cost. In 1993 the average expenditures for these costs was over 12 yuan a month, an increase of 97.5 percent over 1992, of which 62.3 percent was for transportation and the remainder for telecommunications, namely the new trend among many urban households to purchase a telephone and personal pagers. But many other changes were starting to making themselves felt as well.

An unusually strident horn on a Beijing street usually heralds a fleet of Mercedes, prompting other cars in the way to make room. The procession will then rush past revealing a few Cadillacs in the convoy as well. Upon seeing such a sight, one cabbie looked at the cars going Past and remarked on the "a parade of fresh seafood," a colloquial Chinese idiom popular among taxi drivers using food as a metaphor for an elegant car.

These Mercedes, or shengmeng haizian to many Chinese, are yet another kind of Beijing taxi. The more Common miandi, "loaf of bread" or also one of the many short and stout minivans used for taxis in the nation's capital, can carry up to five people for a base fee of ten yuan (a little over a dollar) plus one yuan per extra kilometer. Painted a bright canary yellow, a minadi stands out on even the sunniest day, and is also one of the cheapest ways to get around town.

There are 19 Cadilliacs used as a taxis in Beijing, serving foreign dignitaries and wealthy businesspeople. A few Caddies made an appearance at a wedding in town not too long ago for one of China's better known entertainment figures.

Another kind of Beijing taxi is the standard four-door sedan, which now fare poorly in the highly competitive cab market. One sedan driver complained that "in the past the fare was low and the driver could still make a decent living, but now the current fare is two yuan per kilometer, twice what it costs for a minicab and too expensive for people on an average salary."

On Beijing's Chang'an Boulevard, a writer from China Today saw only three out of 18 minicabs vacant and without a fare . More and more People will now think nothing of flagging down a miandi to visit friends and relatives, make a trip to the hospital, rush off to the train station, or make it in to the office when the buses are full. For only one or two people, a minicab is more expensive than the bus, but it equals out when four or more passengers share a ride. And the miandis are faster and far more convenient.

Beijing had 6,201 taxis in service by te end of 1991 and 25,000 by the end of 1992, with most of new taxis minicabs. Beijing now has 800 taxi corporations according to figures and every day the names are paraded around on the sides of cabs everywhere, on each corner and every street and lane.

Incomplete statistics show that China had 7,000 taxis in 1980 and 160,000 in 1990, an increase of 20 times. Forty-one percent of these cars, or 67,000 vehicles, belong to individuals.

The China Urban Taxi Association says that of China's 467 cities of different sizes, only a few have no cab service whatsoever. The city with the most taxis is, of course Beijing. Even Lhasa, the ancient capital of the Tibet Autonomous Region, has over 100 taxis now in service.

Back in Beijing, of the most undesirable noises of life in the city are people's beepers constantly going off. The little contraptions have become so popular that one of the best-selling items among Chinese teenagers are a series of T-shirts saying in Chinese, "If you want me, page me."

Eight years ago, most Beijingers didn't even know what a beeper liked like. Now they are in every public place, even in classrooms. The rise of the personal pager has created a revolution for Chinese who want to show off the latest in modern communication.

In 1986 a Hongkong entrepreneur by the name of Wong Gamfu was the first to introduce the modern pager to the Chinese market, at a science and technology expo in Beijing. Before returning to Hongkong, Wong generously donated his demonstration model to the Beijing Radio Research Institute.

Wong's little gift did not go unnoticed. That very winter Beijing had its first paging terminal, albeit a very small one, and the market was still incredibly miniscule. Today, However, there are 72 paging terminals in the city with 300,000 subscribers, averaging one pager per 40 people. Most are individual businessmen, followed by service workers and caterers, and then office workers and staff from different science, education, cultural and medical enterprises around the city. A variety of multi-function beepers are now available with digital English and Chinese readouts to replace single-function older models using voice frequency.

The daily sales volume of personal pagers is now increasing at rate of 8,600. Chinese like to call this line of business the "real estate in airwaves, " for it is a profitable occupation but without the risk that speculation in real estate carries.


In rural areas of China many peasants, as soon as they have money, build a new house. The Chinese government claims that these new rural dwellings are part of peasants' means of subsistence, thereby giving residents in the Chinese countryside the right to build new homes and the title to these houses once they are finished. Such sound policies have helped boost the percentage of home ownership in the countryside. As of 1992, rural per capita housing area was 19 square meters, twice the figure of 1978. In the ten years from 1982 to 1992, housing unit cottages were replaced by brick tile and reinforced concrete dwellings, 30 percent of them more than one storey. In China's countryside until 1992, brick, wood and reinforced concrete houses made up 66 percent of all dwellings. In some better-off areas, homes were installed with telephones, wallpaper, indoor plumbing and tiled kitchens. In other places rural residential areas were planted with flower beds and trees.

If this is life in rural areas, how about the cities?

In the early 1980s, one third of urban households had per capita space under four square meters, the next third had between four square meters to six square meters and little more than one tenth had 8 square meters per capita.

Now, with the readjustment of China's economy, the state has increased investment funds for housing and has granted hundreds of millions of yuan on an annual basis as special funding for subsidizing housing construction for staff at primary and middle schools, and workers in the public health and service industry. Many ways of fund raising were tried in all parts of the country with remarkable results.

In the 1980s new urban housing reached 1,240 million square meters, hitting 70 percent of available housing for the first time in the 40-year history of the People's Republic of China. General investment in housing funds was 216 billion yuan, 86 percent more than total funds in the previous 40 years.

Since the early 1990s housing construction has speeded up. Renovation of old homes has been superseded by construction of new residential districts in many urban areas. Numerous moving vans can be seen shuttling back and forth on city streets. Today urban per capita housing in China has reached eight to 10 square meters. In 1994 the Chinese government still included ordinary domestic housing in its plans for developing the real estate industry.

Not having much housing, Chinese people especially value their room space. The enthusiasm for "interior installments," such as wooden floors, carpets, lamps, painted walls and counters, is in every large city and small town. The number of households so furnished has increased by 30 percent. In Beijing, Shanghai, Tianjin and other coastal cities, a well-furnished home is a mist for anyone with a salary.

Shanghai, probably China's most crowded city, has the most active industry supplying tasteful and high-quality furnishings. One leader from Shanghai Building Commission said that furnishings in Shanghai and this included how well one made use of room space, layout and the overall style of the room, had become a science for many retailers in the city, and the quality of decoration often took precedence over architecture and building design for many people. One worker at a professional decorators in Beijing said that many furnishings differed from household to household, with many rooms reaching standards found at three-star hotels.


In the 15 years since the start of China's economic reforms, many peasants have clawed their way out of poverty and now have warm clothing and enough to eat. Quite a few live a well-to-do existence.

The state Statistics Bureau claims that in the 44 years since the founding of the People's Republic rural per capita incomes have increased 16 times to 784 yuan in 1992, five times more than in 1978.

This sharp increase in income promoted rural consumer activity. In 1992 Chinese peasants' per capita expenses was 659 yuan, 4.7 times more than 1978. At the same time their spending patterns changed in that the cost of their basic means of living, such as food, clothing and fuel, gradually went down, but costs for housing, appliances and services increased. Other notable changes taking place in the Chinese countryside were :

-An increase in nutritional intake. In 1992, per capita grain consumption among peasants was 257 kg, broken down into 0.75 kg of unprocessed food grains per day, 80 percent of which were wheat flour and rice. According to standards set by Chinese health authorities, the average daily caloric heat factor was 2,4000 kilocalories above every day requirements for each rural dweller, and absorbed proteins reached world standards in the early 1980s. Previously non-staple foods reserved only for major holidays, namely poultry, fish and meat, are now common fare for most peasants. Milk, beverages, tonics and other snacks with higher quantities of protein also sell well in the countryside.

-Clothing improved and more styles were available. Polyester, wool, silk and leather are now more common and offer more variety, three times as much as in 1978. Now many peasants can dress tastefully. Jackets, down coats and Western-style clothes are popular in some rural areas.

-Durable consumer goods became available to many peasant households. In 1992 each household had on the average two more clocks and one more bicycle, while every other household had a sewing machine and a radio. About 61 percent of peasant households had a TV set, 60 percent of them had an electric fan and 21 percent had a tape player. More and more households were buying motorcycles, refrigerators, washing machines and cameras

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