Tuesday, May 10, 2011

The price tag of anti-Chinese rhetoric in the US - Shaun Rein

The US could lose 1 to 2 trillion US dollar in revenue if they successfully scare away Chinese investors, writes Shaun Rein in CNBC, quoting a recent Asia Society report. "Fear mongering about China by American politicians and businessmen like Donald Trump has made Chinese think twice about investing in the U.S."
A few months ago I was interviewing salespeople in luxury boutiques like Louis Vuitton and Gucci along 5th Avenue in New York. “60 percent of our customers are Chinese,” a salesman at one store told me. “20 percent are Brazilians, and the rest are Europeans and Americans. A few years ago, it was mostly Americans, but not anymore.”...
There are some retail outlets in the U.S. that have been wise enough to adapt their strategy to accommodate high-spending Chinese tourists, including hiring more Mandarin-speaking salespeople. But not all American retailers are that foresighted.
Also Chinese investors have shifted their preference from the US to Europe, Rein says:
In recent interviews, most executives told us they plan to focus on Europe rather than the U.S. because they fear increasing anti-Chinese sentiment here. Cases like telecom giant Huawei’s rejected attempt to acquire 3Leaf Systems have made them nervous, while in Europe the welcome mat is being rolled out for investors.
More in CNBC.

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Shaun Rein
Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting of conference? Do get in touch.
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