Thread: China more expensive than the US

why am I not surprised, Asia is getting more expensive for everyone, not a bargain anymore for basic items and of course properties

Comparing Prices in Hangzhou and Boston, Is China More Expensive Than the U.S.? - China Real Time Report - WSJ

Rising consumer prices in China have caused some big brawls of late: between students and catering companies, between the government and newspapers and now between Hangzhou and Boston.

The stakes in this latest battle? Cost of living bragging rights.

According to Beijing-based business news magazine Caixin, the contest is closer than you might think. In a post published on the Caixin website Monday [in Chinese] one of the publication’s bloggers, Wang Pei, teamed up with a friend in Boston and set out on the streets with identical grocery lists, including 19 food items and two types of gasoline. The mission, to answer the question: “How expensive is China?”

While not exactly a scientific study, Wang admits, the exercise reveals that a surprising 10 of the food items, including green beans and bananas, were more expensive in China. In Hangzhou, a scenic coastal city near Shanghai, the price of beef brisket per 1.1 pound, or 500 grams, and the cost of a dozen eggs were both double the prices found in Boston. A liter of milk, meanwhile, was nearly triple.

Hangzhou’s premium gasoline was also 23% more expensive, and the overall price of the entire basket of goods purchased there was 8% higher.

The average per capita income in Hangzhou in 2009 was 26,864 yuan, or $4,024, according to the Hangzhou local government. Boston’s was $32,255.

China’s inflation has been skyrocketing these days. In November, the consumer price index rose 5.1%, the steepest climb since July 2008.

That’s a stark contrast to the U.S. market, where the index rose 0.1% in November, up 1.1% from 2009.

The big culprit in China’s CPI rise was the cost of food, which jumped 11.7% last month and 10.1% in October. Food prices in the U.S. barely moved, crawling 0.2% in November.

Inflation is also apparent in the housing market, where Wang also drew a comparison, looking at a 99 square meter apartment near Harvard University with an 89 square meter flat at Zhejiang University. The Harvard apartment, listed at 2.75 million yuan, or roughly $411,000, was a bargain when measured against the 3.5 million yuan Zhejiang flat, that, while equipped with a flatscreen TV (in the pictures at least), lacked the oven, fireplace, wood floors, and porch included with its Ivy League counterpart.

Real estate has for years given most people sticker shock, but the inflation is beginning to trickle down to daily goods, like gas and grub, and that’s when people really start to notice it, says Patrick Chovanec, an economics professor at Tsinghua University.

China’s government is intent on battling its inflation problem. It has already ordered producers of cooking oil to cap prices and appears likely tighten credit in the upcoming months.

With more comparisons like Wang’s possibly on the way, the government may not have much time to lose. “This is just a demo study,” he says, “but it’s a reminder to all that the prices of things in China are higher than everyone thinks they are.”

Yep, Asia is very far from the bargain it was 20 years ago...

Clothes and many day to day items are as cheap in London as they are here.

Cars! I keep saying it, but a Honda Jazz made in Thailand is 15% more expensive than buying a Honda Jazz (made in Europe) in England... It's insane, cause it ain't the workers who are making all the extra profit, it's greed, greed and more greed (from the top)...

^ for cars, it's taxes, not necessarily the manufacturer making more money, since they are built here

The cars built here, Papillion, must make massive, MASSIVE, profits. I'm sure the government get huge backhanders off the Jap auto companies and they split the profits while raping the Thai consumer. This is why they have the huge taxes on foreign made vehicles, not to protect workers' jobs, but to protect their slice of the massive profits.

A honda Jazz made in Thailand must cost about 50% of a Honda Jazz made in Europe. So, how does the retail price (and the taxes on locally produced cars are not high) become higher than a UK vehicle... Greed from the corrupt government officials and Jap owners would be my guess.

A bit poor comparing China to a relatively cheap place like the US.

Originally Posted by Bettyboo

...the taxes on locally produced cars are not high....

Never bought a car in Thailand, have you.

Excise tax on a non-pickup truck vehicle with a engine size 2,500 cc to 3,000 cc is 40%, greater then 3,000 cc is 50%. Plus 7% VAT.

I would consider that pretty high.
TH

^ that's because you are stupid...

& yes, I have. & I'm comparing costs with other places (UK), you think they don't have equivilent taxes... muppet.

Every time you open your mouth, TH, you make yourself look stupid...

Originally Posted by Thaihome

a non-pickup truck vehicle with a engine size 2,500 cc to 3,000 cc is 40%, greater then 3,000 cc is 50%.

Just thought I'd highlight the typical BS you spurt... ^

Cars above 2.5 and 3 litres are few and far between here.

I was talking about a 1.5 litre Honda Jazz. Now, go away, check the taxes in the UK and compare them with Thailand, then come back and apologize...

Originally Posted by Bettyboo

Originally Posted by Thaihome

a non-pickup truck vehicle with a engine size 2,500 cc to 3,000 cc is 40%, greater then 3,000 cc is 50%.

Just thought I'd highlight the typical BS you spurt... ^

Cars above 2.5 and 3 litres are few and far between here.

I was talking about a 1.5 litre Honda Jazz. Now, go away, check the taxes in the UK and compare them with Thailand, then come back and apologize...

The UK has gone to an emissions based vehicle excise tax. The Jazz has zero tax the first year.

The 1.5 liter engine in Thailand will incur 30% excise tax. The newer ones that can run E85 get 22% excise tax.

You stated new car tax in Thailand is not "high". I pointed out that it could be considered "high". Even your 1.5 Jazz is 30%.

I still maintain that one of the main factors in new car prices in Thailand are high is the excise tax.

I see no need to apologize.

Note I did this without any personal attack such as you seem to think is necessary in every reply you make to me.

TH

Originally Posted by Bettyboo

A honda Jazz made in Thailand must cost about 50% of a Honda Jazz made in Europe. So, how does the retail price (and the taxes on locally produced cars are not high) become higher than a UK vehicle... Greed from the corrupt government officials and Jap owners would be my guess.

hardly, certain parts must be imported and taxed, and of course they have the engine tax, and incidentally this is the expensive part of the car. They are assembled here, not build here. However some minor parts are built here.

in Europe an auto manufacturer has a "gross" profit margin of 30% on a vehicle, reseller takes another 15% from it, leaving 15% before other marketing cost

it's not different here, except they are being taxed heavily on the parts, so the retail mark-up is higher. Still profitable enough to keep their 30% "gross" margin like European manufacturers.

Originally Posted by Bettyboo

Yep, Asia is very far from the bargain it was 20 years ago...

Clothes and many day to day items are as cheap in London as they are here.

Cars! I keep saying it, but a Honda Jazz made in Thailand is 15% more expensive than buying a Honda Jazz (made in Europe) in England... It's insane, cause it ain't the workers who are making all the extra profit, it's greed, greed and more greed (from the top)...

the only reason for this is the Chinese RMB peg to the dollar. The Chines will revalue the RMB up, like they have already a few years ago. This will make it more expensive for westerners in Asia but cheaper for Asians

Finally...a sensible comment.

It is my hope that we shall speak with one-another in the not too-distant future.

By the bye, young man, I spent most ev'ry summer of my younger-years on PEI ("Poverty-Every-Inch" as they used to say) on a horse-drawn farm where even cows and pigs had names.

Yet "truthfulness" was highly-prized.

Respectfully, I do appreciate your post.

Regards

Originally Posted by Thaihome

greater then 3,000 cc is 50%. Plus 7% VAT.

Originally Posted by Thaihome

2,500 cc to 3,000 cc is 40%

Originally Posted by Thaihome

run E85 get 22% excise tax.

So, it's coming down dramatically... more BS from you, but you have halved the numbers... &, you've forgotten a lot of other taxes for UK cars, go back and do more research - when you have all the information, if you are honest (which you won't be), you will say that a UK Honda Jazz has higher total government taxation and higher total cost of production than a Thai Honda Jazz, but the Thai Honda Jazz costs more money - my point exactly...

Originally Posted by Butterfly

hardly, certain parts must be imported and taxed, and of course they have the engine tax, and incidentally this is the expensive part of the car. They are assembled here, not build here. However some minor parts are built here. in Europe an auto manufacturer has a "gross" profit margin of 30% on a vehicle, reseller takes another 15% from it, leaving 15% before other marketing cost it's not different here, except they are being taxed heavily on the parts, so the retail mark-up is higher. Still profitable enough to keep their 30% "gross" margin like European manufacturers.

Every statement is false and utter BS, you clearly have ZERO knowledge, and decided to just make stuff up...

Originally Posted by socal

the only reason for this is the Chinese RMB peg to the dollar.

It may be a reason, that's true, but it is not the ONLY reason. In fact, for the Honda Jazz example, it is not even the or a major consideration.

On clothes made in China, maybe...

Rage, rage, rage!
Sb made an inaccurate statement about vehicle tax!
I'm going to have to shoot soneobe!
Rage!

I wonder if in my lifetime Asian businessmen will start flocking to the stagnant west for cheap retirement?

housing is out of control, typical asian way of thinking, they are thinking that things go up, never go down, without thinking about risk. It's fascinating and scary at the same time.

China is still in a property boom and they are trying to stop it, it's going to be brutal when the kool-aid money stops

Originally Posted by sabang

I wonder if in my lifetime Asian businessmen will start flocking to the stagnant west for cheap retirement?

Who knows but I doubt if they'll be flocking to the U.K. for the cheap women anytime soon.