The rich in China have continued stack up their status symbols despite an
increased consumption tax since April last year.
From January to July, the imports of luxury consumer goods rose 27.6 percent
year-on-year to reach US$4.85 billion, according to statistics released by China
Customs yesterday.
In the period, Chinese spent US$4.05 billion, or three quarters of the total
value of imported luxury items, on 117,000 passenger vehicles with the engine
size above 2.5 liters.
Imports of other luxury goods, such as cigarettes, alcohol and golf balls and
clubs, were all on the rise except for jewelry, which saw a slight drop of 5.7
percent.
China also imported 44 yachts in the first seven months, with more than half
from the US, while there was no record of yacht imports in the same period last
year.
Foreign-funded trading companies have become powerhouses for China's luxury
goods imports, with an import value of US$3.35 billion, or almost 70 percent of
China's total value of imported luxury goods.
Chinese state-owned company imports of luxury goods dropped 18.7 percent to
US$720 million while imports by private firms fell by 29.4 percent to US$670
million.
The Ministry of Finance began levying customs duties with higher rates on
luxury items, including high-grade watches, cosmetics, golf balls and clubs
brought by travelers or mailed to China at the beginning of the year.
This came after a consumption tax on luxury goods, such as luxury watches,
golf balls and clubs, yachts, wooden floor panels in April last year.
China has become the world's third largest luxury goods consumer, with its
market share taking up 12 percent of the world's total by 2006. The country is
expected to become the world's largest consumer of luxury items in 10 years.