China’s consumers are coming under fire for doing their shopping overseas at a time when the country is trying to build up consumption on its home turf.
China’s state broadcaster ran a storyon Monday highlighting the vast amount of money consumers are spending overseas to buy luxury goods abroad, evading mainland tariffs that increase prices on goods by 30% to 50%. The broadcast came shortly after a commentaryfrom China’s official Xinhua news agency that criticized luxury consumers, saying that they are avoiding tariffs that would benefit the nation.
Chinese people bought 25% of the world’s luxury goods in 2012, spending a total of 306 billion yuan ($49 billion), CCTV said, adding that of that money, 60% was spent abroad.
Via Jerome Goldberg (JMG-Research)