In December of last year I made a statement that startled the students enrolled in my Chinese economic development course: that prices overall in China were high relative to prices of goods in the United States. They were surprised because the consumption choices of American college students studying abroad in China often do not go far beyond that of an inexpensive bowl of noodles, a few Qingdao beers on a Friday night, and a bagful of knock-off brand name clothing from the Silk Market.  But the rising Chinese consumer, whose consumption habits require much more than food and clothing, faces a very different basket of consumer goods, and most of those goods are sold at high prices.

To illustrate, here’s a quick look at the prices of housing, airfare, medicine, and cars in China.

Read more: http://www.rectified.name/2013/03/11/willing-to-pay-on-the-cost-of-living-in-china/