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Fast food industry woos ChinaThere was a time when french fries and hamburgers were hard to come by in China. The fast-food items Americans have enjoyed for years were limited to upscale hotels and exclusive Western-style restaurants throughout the country. In recent years, however, the fast-food industry has realized the immense potential of China’s emerging economy. In the early 1990s, fast-food restaurants began surfacing in China. Their immediate success charged the tremendous growth, which is still in full-force today. Increasing popularity of Western influence Richard H. Pettway, a professor at the Warrington College of Business at the University of Florida, said many companies have moved to China because of the " China price," which means cheap labor and goods for maximum profit. Pettway said American firms have been moving to China because the country is "the new 'hot kid' on the block." That 'kid' used to be Japan or Sri Lanka, he said, but now China has taken the role. "It's just a natural evolution of the competitive marketplace," Pettway said. Kentucky Fried Chicken and McDonald’s are the two most popular fast-food restaurants in China . “ Yum! Brands Inc.,” which owns KFC, reported that KFC is the number one quick-service restaurant brand in China, with more than 1,300 restaurants in about 280 cities in the mainland. According to the U.S. Department of Agriculture’s Foreign Credit Suisse First Boston analyst Janice L. Meyer said to Forbes magazine that the fast-food market in China is expanding today at more than double the U.S. pace. Recipe for success The fast food industry has had success in China for the same reasons that it has had success in the U.S.: Convenience, efficiency and novelty all contribute to the appeal of fast-food restaurants in China. Fast food restaurants provide an affordable option for Chinese consumers hoping to dine out. The dramatic changes to China’s economy fueled the success of the fast-food industry. The efficiency of fast-food restaurants means very little in countries without a market economy. Pettway said China’s move toward a capitalist economy mirrors the substantial increase of free trade around the world. "China is trying to become a progressive international trader," he said. |
AudioLinks
Information on Agriculture and the Imports and Exports of China: “Fast-Food Restaurants: Just What Eastern China's Consumers Ordered,” USDA Foreign Agricultural Service: A detailed listing of the most popular fast-food restaurants in China and descriptions of each. “China at a Glance: A Statistical Overview of China’s Food and Agriculture,” by Fred Gale, from China's Food and Agriculture: Issues for the 21st Century, Agricultural Information Bulletin No. (AIB775) 68 pp, April 2002: A collection of articles addressing the issues that will affect China's future trends in consumption, production, import and export of food and agricultural commodities. The articles also cover China's food consumption, marketing and international trade. This is a PDF file. Information on Expanding Chinese Language Opportunities in the United States: US Senate Proposed legislation: United States-China Cultural Engagement Act of 2005: Summary of the bill to increase the business and cultural engagement of the United States and the People's Republic of China
Information on Human Rights in China “People’s Republic of China: State Control on the Internet,” Amnesty International: An article from Amnesty International on the regulations imposed in China since the commercialization of the Internet. Amnesty International is a worldwide movement of people who campaign for internationally recognized human rights. Human Rights in China Home Page: An international, Chinese, non-governmental organization with a mission to promote universally recognized human rights and advance the institutional protection of these rights in the People’s Republic of China.
General Information on China The World Bank Group in China: The World Bank office in Beijing. Includes the “China Quarterly Update” from Nov. 3, 2005. The report notes that measures to improve social safety nets, health and education could support the governments strive for more balanced growth, and the need for structural reforms in the financial sector and corporate governance. “China’s Emergence as an Economic Superpower and Its Implications to US Business,” US Department of State Speech given by E. Anthony Wayne, Assistant Secretary for Economic and Business Affairs, at the Executives' Club of Chicago, International Leadership Conference Hyatt Regency in Chicago on May 25, 2005
Sources (Used for research, but not to be linked in stories): “Google omits controversial news stories in China,” Sept. 21, 2005. “Stock Focus: Fast Feeding China's Masses,” Forbes Magazine, May 20, 2005 “U.S. French Fries Heat Up China’s Fast Food Industry,” U.S. Department of Agriculture’s Foreign Agriculture Service |
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