China talks up local retail
Foreign chainstores not dominating, says government
February 13 2004
The Chinese government has moved to quell concerns that foreign retailers are starting to dominate the country’s retail industry.
The official state newspaper, the [i]People’s Daily [/i]has quoted statistics from the Ministry of Commerce which it insists mean worries that companies such as Wal-Mart and Carrefour would damage impact local businesses are unfounded.
There are six joint ventures involving operators from outside China in the official list of the top 30 Chinese retailers. These include Carrefour, Wal-Mart and Metro.
Total sales for the six companies reached 49.5 billion yuan, or $5.98bn, last year, representing 18.3 per cent of the combined sales for the top 30 companies.
The Ministry of Commerce has also indicated that Carrefour is likely to get the go ahead for three new stores.
Junior minister Huang Hai said: “We have accepted its applications, but none have been approved.
Carrefour has been blocked from expansion for the past two years after alleged violations of Chinese regulations. The minister indicated that approval is imminent.
