The new gold rush

Abstract

A Chinese friend of mine — who is a Beijing-based investment banker — told me he was shopping in New York recently, looking for watches at an up-market department store. The salesperson was showing him the watches. As he was trying them on, he noticed that a shabby-looking Chinese gentleman alongside him who was unable to speak English was not getting any service. My friend asked the saleslady if she wouldn’t mind serving his countryman for a moment. She reluctantly agreed, but was unwilling to let the poorly dressed customer handle the watches. Eventually my friend persuaded her to let the Chinese customer try on the watches. After trying on several, he said in Chinese that he wanted to buy three, which my friend translated to the saleslady. The Chinese gentleman opened up his battered briefcase and pulled out thousands of dollars in cash to pay for them. In the best traditions of New York commerce, the saleslady ditched my friend and gave the Chinese gentleman her undivided attention as she processed his transactions, leaving my friend struggling to get served.

Europe’s 21st century will be shaped by emerging market economies, of which China’s economy will be by far the most important. For the EU, China is already a key trade partner, ranking second only to the US. China and the EU are strategic partners, with EU-China summits which allow for a regular exchange of views. Our positions converge on a significant number of issues.

Jean-Claude Juncker, Prime Minister of Luxembourg, November 2010, speech at Horasis Global China Business Meeting, Luxembourg