Chinese will not copy US consumerism - Paul French

A shopping mall in Shanghai by Fantake via Flickr

Analysts and economists are carefully following how the Chinese consumers are behaving during the financial crisis, but it is certain that they will not behave like American consumers, says Paul French, director of Access Asia to USA Today.

"We can't get them to replicate Americans," agrees Paul French, the British marketing director of research firm Access Asia. "Americans are just so good at consumerism, like obesity and greenhouse gas emissions. Although the rest of us try, it is very hard to compete."

By saving up to 24 percent of their household income, Chinese limit their spending power in a similar way European governments do it by taxing their citizens, says French.

The Chinese are "self-taxing," he says. "But it's not as effective as having a welfare state. Theirs is not a bottomless pot." Even frugal Chinese households can be wiped out if a family member is diagnosed with a long-lasting illness such as diabetes.
The stimulus sets aside money for expanding health care and old-age assistance, but French notes that "you can't build a national health care service overnight."

Commercial
Paul French is not only a candid observer of Chinese consumers, he is also connected to the China Speakers Bureau. When you need him at your meeting, let us know.