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It is a matter population, you mentioned two of the....
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Posted by TKC (more from TKC) on Thu, 6 Nov 2003 10:26:58 Share Post by Email
In Reply to: Randy Thatcher question, phred, Wed, 5 Nov 2003 11:51:15
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most populous countries in the world.

I believe your question is how on earth people in these two countries can afford private cars. The answer is quite simple, take China for example, it has about 1.8 billion people give or take. Now, suppose there is just 0.05% (a conservative estimate) of the population can afford private cars. That translates to 900,000 private cars in a growing market.

If you look at the amount of trade surplus China has with the world, we are talking about many billions of $US. The money goes into the pockets of more than a few individuals, add on to the many under the table deals, the amount of money the new economic elites have may surprise you.

Do not confuse appearance and wealth. You may walk into a primitive village and think that people living there are poor. You may be surprised in what they have inside their primitive looking surroundings or what get parked under a hut next to their houses.

There is a large consumer class in China, again just use a percentage of the huge population, e.g. 10% can afford some sort of luxury items. China is one the largest market for tobacco, think of the numbers if just 15% of the population smokes ONE cigarette a day.

Yes, China is still a communist country but if the market place is any indication, you would see free enterprise is alive and well. If there is no demand, there will be no market.

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