Rip off China

We used to feel miffed back in the UK that everything there was artificially expensive - and it was true. The biggest example was the price of cars which were some 20 to 30 per cent higher for exactly the same model and specification than in Europe. So this fuelled a grey import trade and coined the phrase "rip off Britain". The car manufacturers were keeping the prices high - much higher than in nearby countries. The cost of manufacture was the same.

Now, over here in China, I find a similar rip off effect. I want to buy a new bike, a fixed wheel bicycle and everywhere I look they are massively more expensive than in the UK or the US. The Trek District is a hefty £599 and here in China it's 9580¥. But £599 in ¥ is 6038. A significant difference. Now Trek China tell me the start price is the same but there's an import tax of 30% and a sales tax of 17.5% which accounts for the difference but by my calculations, they're still 1727¥ more expensive than the start price + import tax + sales tax. I arrived at this comparative figure by first subtracting the UK sales tax and then adding the Chinese import and sales taxes.


So what's going on? Well I'm not sure. I just know that my bike in a UK store is £599 and in China it's an equivalent of £950 and I'll be damned if I'm gonna pay the extra to the Chinese Government and/or to Trek. It's a lovely bike but I'd rather go without. There's no free trade here.