Of real interest:
DJ article released Sun. mentioning computer price increases in China...
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SHANGHAI -- Computers prices have jumped around 15% in
Shanghai in the past two weeks, as China's new clampdown on
smuggled goods starts to take effect, and retailers say they
expect prices to rise even further later in the year.
"Computer prices have increased by up to 1,000 yuan (CNY)
($1=CNY8.2799) for different brands," said a salesman from
Shanghai Highly Computer Co., which sells mainly laptops. He
said computers made by Hewlett-Packard Co. (HWP) of the U.S.
have seen the largest price increases.
Many computer retailers here say supplies are short, but note
they are reluctant to import foreign brands due to high import
tariffs. "Normal import duty for computers is around 20%, but
before you could always find a way to pay less than that," a retail
salewomon said. Her company is formal agent for International
Business Machines Corp. (IBM), Compaq and HP products.
She and others said many local consumers are switching to
domestic made computers, which haven't been affected by
China's anti-smuggling campaign.
Rapid economic growth here in the past two decades has fueled
strong sales of high-tech products. China now sells around 4
million computers annually, though much of that is suspected of
being smuggled into the country tax-free. Growth in computer
sales is expected to remain strong, particularly in the
less-developed regions of China.
Sales, however, may start favoring local producers. China
launched an unprecedented crackdown on smuggling last month,
and tied the military's response to the crackdown directly to its
success. The military here is a main sponsor of smuggling,
particularly of oil imports, which even the government has
acknowledged.
Computers are also a top item smuggled. Many international
producers have production facilities here, and their product is
frequently exported out of China legitimately before being
smuggled back in to avoid duty. Those firms say they play no role
in the illicit smuggling, but by exporting first, the producers can
win tax rebates.
Interesting that Dell has a plant in China now...
--spaw-- |
