The Chinese Price and Laowai (Foreigner) Price

When a foreigner buys something in China, in some cases, they find out that things will cost more than what the local Chinese will pay.  For example, the Chinese can book hotels at a lower price directly from China, although some hotels will say that this price will not apply to a laowai (foreigner).

Also when you go into a bar, often they give you a higher price when you order drink or in a shop, a higher price for the merchandise. When people grab you on the street to try to sell you stuff, they also are likely to tell you a price that is much higher than what they charge local Chinese.

So you will ask, why does this happen?

As a laowai, do I look like an ‘easy mark’?  Are the Chinese trying to take advantage of me? You’ll be surprised to know that the Chinese believe that laowei is more generous than Chinese, and this is actually is a way that Chinese will show their appreciation.

Nowadays, many international companies are doing business in China, arranging hotels, flights, business meals, presents, etc. all on the company’s expense. If your company spends more than a few thousand USD per month, and you could be guaranteed savings from 30-40%, would you hire a company and spend 5% to achieve this goal?

Tell me what you think?

By Jeffrey Holtmeier (Jeff@cu-bd.com) & Junying Sun  (jun@cu-bd.com)