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The Chinese state-run newspaper, People's Daily,
published an article comparing the commodity prices between China and America.
It said that the price of luxury products in Beijing
is generally higher than in New York.
However, public transit in NYC is a lot more expensive
than in Beijing.
Thus, this newspaper's comparison raised doubts among many of
its readers, as they realized that the article purposely ignored and
avoided a very important basis of comparison, that is, the large gap
between the income level of Chinese and American citizens.
An economist knows that Chinese and American commodity prices
cannot be compared, because the standard of living is vastly different.
On September 13, People's Daily published an article titled,
"Is Beijing's Commodity Prices Higher Than New York?"
The article claimed that foreign consumer goods sold in Beijing
were higher than in New York,
due to the fact that they are seen as luxury items
by Chinese locals, thus they sell for higher prices.
But the article turned around and said that public transit,
labor, services, and intellectual property in New York are a lot more expensive than in Beijing.
The article was criticized by Chinese netizens,
after it was published, with one saying netizen saying,
"Anyone with a little basic statistical knowledge and
social wherewithal will notice that the examples used in the comparison are not equal."
NTD Commentator Jason said that,
Chinese and American have different life style.
It is not realistic to compare prices between cities
in America and China.
Commentator Jason: "Relatively speaking,
Chinese own less cars and they live in smaller homes.
American's way of life, their food, clothing, the way they live,
and the quality of their lives, like travelling, cannot compare to the Chinese at all.
Frankly speaking, China is different than America.
America has maintained this higher standard of living for many years, now."
People's Daily also included a table in the article,
comparing prices between some Chinese and American products.
New York City University economics professor, Chen Zhifei,
said, "This kind of comparison lacks cogency.
You should first find a Beijing local with a monthly income
of 10,000 yuan (US$ 1,565),
and see how compelled he feels to live the American lifestyle.
In this way, you can see the difference."
New York City University economics professor, Chen Zhifei:
"If you use exchange rates to compare, it is not possible, since the Chinese yuan is still worth less than the U.S. dollar."
New York resident, Ms Bai, who used to live in Beijing,
said you couldn't buy anything in Beijing with an equivalent amount of money.
Ms. Bai: "Of course it is cheaper to live in New York.
With $20, you can buy a few groceries at the supermarket; with 100 yuan (US$ 15.65), you cannot buy much."
Beijing resident, Ms Jia, went to America three times and
said that there is a big difference between commodity prices in China and America.
In China, food and consumer goods are very expensive and
there's also a big difference in quality.
Ms Jia: "It is so expensive to eat in China. I am very aware of
the difference in commodity prices in the two countries.
A person in China spends 1,000 yuan (US$156) per month
on food expenses, while in America, you could get by with only $150.
News Cnyes (cnyes.com) reported that,
unfortunately the People's Daily (of China) didn't mention people's income between the two countries.
It reported that an ordinary clerk who finished education
just for one or two years in America, the salary is about $3000 per month,
it equivalent RMB 20,000 yuan(US$212),
this absolutely can't compare with a Chinese student in the same circumstances.
In America the price is steady, the price is higher in China,
people's income are totally different, under such a conditional comparative, obviously it is unjustified.
Netizens believe that it would have been better to compare
the living standards between China and America in the article—not just commodity prices.
NTDTV Liang Xin, Tang Tui and Xue Li
《神韵》2011世界巡演新亮点
http://www.ShenYunPerformingArts.org/
