Despite prices, a rush into China

A throng of foreign buyers trampled security barriers and pushed aside guards in their haste to enter the Canton Trade Fair at its opening Friday, another sign of how companies all over the world are still rushing to do business in China. This rush into China has led to worries of inflation in the PRC, a perpetual worry for any economy but even more so in a country where prices were long fixed by the government. Now that market forces are determining prices for most products, Chinese firms are having to adapt to rising commodity prices for their inputs while dealing with the constant downward pressure on the price of outputs applied by Wal Mart and others. More...