Quote Originally Posted by branng View Post
... the pricing of "things" is dictated by what people are willing to pay for them. And enough people are willing to pay an inflated price for a product, then that will be the price of that product.
So true!

A while back (maybe 8 or 9 years), I was interviewed (as a "foreign expert") by CCTV and a couple of news publications about the price of real estate in Beijing. At that time, it was around 7,000 rmb/sq meter. I took the Western view that, according to countless studies, over the long term Real Estate prices are related to the Affordability Index. I went on and on about the numbers, and the studies, and I ended up suggesting that Beijing real estate prices were likely nearing their peak.

Boy, was I wrong! Given that current Beijing prices are about 60,000 rmb/sq meter (inside the 3rd ring road), I have been relearning "Economics ... with Chinese characteristics." What I failed to realize back then was the virtually endless supply of rich people from other cities that want to move into Beijing - and buy black Audis, etc.

So, today, a typical 100 sq meter apartment costs about $1 million (US), yet the average annual net income in Beijing is about $5,000 (US), although some argue it is closer to $10,000 (US). Either is irrelevant, IMHO, once you do the math.

Quote Originally Posted by ChinaV View Post
We just spent 2 months back in the USA, EVERYTHING in China is now more expensive by a huge magnitude.
Wow, you are the third person I've heard say the exact same thing this week. Our gone (but not forgotten) TBR experienced the same in his recent trip stateside. Anecdotally, I met a riding buddy for lunch at the Kempinski (about a 4 star hotel in Beijing) and, feeling generous, I offered to pay. Two buffet lunches, one can of coke (48 rmb) ... total was 681 f'n RMB. WTF?!? Good thing I had my credit card with me!