Costco’s opening in China defies US attempts at decoupling

Source:Global Times Published: 2019/8/28 19:13:40

Instead of leaving China, US mega-retailer Costco opened its first Chinese mainland flagship store in Shanghai Tuesday. As consumers waited in long queues to get inside, the new supermarket has become the latest sensation in the Chinese market. On a weekday, Chinese dashu and dama (elder men and women) in Shanghai added to the unbelievably spectacular opening of Costco that seems unlikely to be repeated in any other country. 

It's believed numerous companies from the US and other countries would be amazed at, even a little jealous of, such an auspicious start. Facing the US leader's order that American companies quit China, Costco has voted with its feet. 

The Chinese market is attractive to US companies. Chinese consumers who still yearn for foreign goods are a group that all consumer products companies vie for. US electric vehicle maker Tesla impressed the world with its move to invest heavily in Shanghai last year despite the trade war between China and the US. US leading supplier of biotechnology products and services Thermo Fisher Scientific attracted by the rapid development of China's medical market, recently decided to invest in a new production base in Suzhou, East China's Jiangsu Province. China's foreign direct investment climbed 7.2 percent in the first half of 2019 compared to the same period last year. 

The attempt by some US elites to sever US economic ties with China is as difficult as sailing against the current. 

A middle-income group that is bigger than that in the US is coming up in China. "Dama" economy will become a phenomenon that cannot be ignored by the global economy. To be frank, the US cannot afford losing the Chinese market, unless it wants to thwart US businesses and bury the largest economy in the next decade or two. 

There is no other market in the world with so much potential, sound infrastructure, industrial support capability and abundant talent as China. Giving up the Chinese market is unbearable for all global corporations. 

Also on Tuesday, China's State Council issued a policy package including 20 measures to beef up consumption, reflecting the Chinese government's resolution of further expanding the domestic consumption market. This will cushion a fall in exports caused by the trade war, and will further promote reform and opening-up. This is China's practice of doing its own things well.

Since the beginning of the China-US trade war, most of US economic growth that the country brags about has not been solid. China's economic growth further unleashes the country's potential, and has led to the continued rise in the number of wealthy people. If China-US economic links keep weakening, the US always tends to believe it is easy to find replacement of Chinese products. But in fact, the longer the trade war, the stronger the Chinese economic adaptability.

The trade war's difficulty for China is close to the peak . China has maintained its orderly economic situation and reform and opening-up, and has kept up strategic sobriety, patience and resolution. After more than one and a half years, the US has nearly played all its cards, but it can do nothing to China. The US has lost the chance of forcing China to maximize the concession it offers. Washington will see Beijing gradually take back the initiative in trade disputes. 

Just see how many Chinese people are at the world's most popular tourist attractions, how many Chinese youngsters are studying in Western universities, the sales volume of international luxury brands in the Chinese market, and how much has the Chinese market contributed to the sales of American companies of airplane, automobile and mobile phone, it is not an easy job for the US economy to decouple from China's.  

China will not proactively escalate the trade war, and will not discriminate against US companies that invest in China due to the trade war. As the trade war is messing up the world, China is bound to be stronger.

Posted in: EDITORIAL

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