Middle Class in China?

Social commentary of the day: Went to IKEA (yes, we have IKEA in Shanghai) today to buy mesquito net and was astounded by the amount of locals shopping there. Expensive by local standards, I was profoundly intrigued by the emerging middle class here and their growing spending power. Imagine, for the first time in its history, China is experiencing its first middle class. It will be so interesting to watch this child grow in the next few years.

"...Although China boasts the world's fastest-growing economy as millions join the ranks of the middle class, the Chinese are famous for their reluctance to spend their money, saving on average 30% of their income, one of the highest savings rates in the world," says Mei Fong the of WSJ. "By increasingly stocking Ikea's Chinese shops with China-made products, Mr. Duffy pushed prices on some items as low as 70% below prices in Ikea outlets outside China. For example, an Ikea's single-seat Ektorp armchair retails for $112 in China, 67% cheaper than one sold in the U.S." Article continued...