Starbucks coffee 75% costlier in China

[Stromski]

A regular-size café Americano from the global coffee chain sells for 21 yuan (US$3.20) at its China outlets, whereas the same item would only cost US$1.80, or 12 yuan, in a US store.

It's not uncommon for foreign brands, particularly luxury ones, to sell their goods at higher prices in China compared to at home. For example, a Jeep Grand Cherokee sport-utility vehicle sells for about 540,000 yuan (US$84,000) in China but only costs about US$30,000 in America.

Zhou Ting, dean of the Research Institute for Fortune Character, said taxes are the main reason causing the price difference.

Auto companies have to pay tariffs, consumption tax, and value added tax to sell their products in China; these taxes plus logistics and marketing costs make up a big proportion of the retail price for foreign goods, she was quoted as saying in a media report. Moreover, she said, Chinese consumers' increased purchasing power has ingrained a preference for foreign brands in their spending habits.

Chinese officials' awareness of double standards between foreign products sold in China compared to other markets is growing. China recently slapped Nike with a 4.87 million yuan (US$779,000) fine for ‘misleading customers' by selling sneakers "at a higher price and lower standard", Beijing Evening News reported.
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