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McDonald's Outlets Remain Popular in China

Lai Linsheng, general manager of McDonald's north China branchk, expects the company's booming trade in China to continue in the future, according to Monday's Beijing Morning Post.

Although McDonald's headquarters has decided to close 250 outlets worldwide due to the global economic downturn, Lai still feels confident about the Chinese market and believes McDonald's will develop at least as fast as other western fast food giants in China do.

Last year the company opened 100 outlets throughout China.

So far, in the United States, every 20,000 people have one McDonald's outlet to go to. Lai believes one day, McDonald's will be as popular in China.

Lai also says McDonald's is set to expand its business to the cities in west China which is in the process of modernization as the result of the Chinese government's strategy for western China development.

However, he says McDonald's hamburgers are not only eaten by many Chinese people, but also bring considerable profits to the country.

According to Lai, 97 percent of the raw materials used by Chinese McDonald's outlets are bought in China, at an annual cost of more than 1.5 billion yuan.

From 1992 to 2001, McDonald outlets in Beijing also paid a variety of taxes bringing 310 million yuan in tax revenue.

In addition, China annually exports about 1.5 billion pieces of toys labeled with the McDonald's logo, creating more revenue.

( Xinhua News Agency March 11, 2002)

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