Readers hoping for discounted book prices now that foreign
investors can sell publications are likely to be disappointed.
China allowed foreign investors to retail newspapers, magazines and
books in the local market from May 1 this year, and will allow
foreign wholesalers to enter the newspaper, magazine and book
sectors in December 2004.
Many Chinese have been looking forward to discounting fuelled by
the new arrivals.
"I
hope the competition between book sellers at home and abroad will
finally result in the reduction of book prices, so I can spend the
same amount of money buying more good books," said Zhang Xin, a
college sophomore in Beijing.
However, insiders predict book lovers like Zhang will see few price
changes.
"Foreign investors' participation in China's distribution channels
for publications will not influence book prices much," said Hao
Zhensheng, a senior researcher with the State Publication Research
Institute.
On
the contrary, as people's consumption capacity grows, book prices
could in fact rise in China, Hao said.
He
reasoned that bookstores with foreign investment are not likely to
attract customers in China simply by discounting their products and
running down their profits.
"Their advantages lie in providing excellent service to customers
and paying publishing houses back on time," Hao said.
China has so far not permitted foreign capital into the publishing
sector.
But Hao predicted foreign investors could influence the decisions
of some mainland publishing houses in their choice of topics.
"After foreign book dealers build up their sales network in China,
it is possible they may end up controlling topic selection by
ordering large numbers of books from publishing houses," he
explained.
Foreign investors as well as those from Hong Kong and Taiwan had
already made preparations ahead of the market entry date of May
1.
According to the latest 2002-2003 Chinese Publishing Blue Book, at
least four joint ventures were established in the publication
retail and wholesale business from January to November last
year.
They include the first to gain official approval - Greater China
Media Services Ltd, which is jointly owned by Hong Kong-based
Global China Technology Group Ltd and People's Daily Press at a
cost of 250 million yuan (US$30.1 million).
Others include a partnership between the mainland SDX (Sanlian)
Joint Publishing Company and Hong Kong-based Tom Group, and a joint
book sales venture between Fujian Provincial Foreign Language
Bookstore and 13 Taiwan publishers.
(China Daily June 16, 2003)