Don’t Quote Me (On When US$100=RMB100)

Related entries: General, Investment, Trading

Jack Perkowski, author of (book and blog) “Managing the Dragon” (and Mr China’s boss) has some good advice. One of the memorable quotes from the book, which highlights the very different perspectives of those visiting China and those who have grown up there, runs as follows:

    “I always carry two bills with me – an RMB100 bill and a $100 bill…The point I make is that these two bills are treated in exactly the same way in their respective countries. Just as the $100 bill is the highest unit of currency that you can get in the United States, an RMB100 bill is the highest unit of currency you can get in China…

    When Americans look at a RMB100 bill, I say, divide by 8 and see $12.50. But when Mainland Chinese look at the same bill – and I don’t care how wealthy they are – they see what Americans see when we look at our own $100 bill.”

Anyone who has conducted price negotiations in China will know what he is talking about.

One Response to “Don’t Quote Me (On When US$100=RMB100)”

  1. China Journal : Best of the China Blogs: October 27 Says:

    […] might slow and even reverse course, but it’s still worth remembering the context in which 100 yuan can equal 100 dollars. [China Business […]

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