Friday, October 4, 2013

In China, Veil Begins to Lift on High Consumer Prices


http://online.wsj.com/article/SB10001424127887323932604579052973988936230.html

Chinas retailing world for many imported goods are more costly on average compared to many of the countries worldwide. Government taxes and high tariffs are to blame for this. Most of the consumers being middle class have had to bare these prices for many years until they found that comparing prices and buying from overseas when traveling, or through e-commerce, is a more economical option. Authorities have begun to crack down on companies that have unlawfully influenced prices in the China market. More than five big companies have been fined for manipulating prices and charging over priced goods. Many imported luxury goods such as Escalade, have been slapped with consumption taxes that are unproportional to the average pricing worldwide. This is for companies to show that the higher prices represent better quality. However, other products like Coca-Cola are much cheaper in China than in the US.

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