Bartering in China, are dollars helpful?
May 21st, 2005, 02:31 AM
#1
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Bartering in China, are dollars helpful?
Hi, its me again, the mom with the 13 yr. old son going to china as a student ambassador. At my son's meeting this past week, a parent who had been to China last year gave a presentation on bartering in China. This parent told the kids to bring a lot of $1 bills for bartering in China. He said that the vendors will give you a better price and you will have more success in bartering if you pay in $1 bills. Is that true? Any tips you can give with bartering in China would be appreciated. Thanks, itsv
May 21st, 2005, 08:10 AM
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I found that to be the case 4 years ago in Beijing,Xian,Shanghai. This year we were in smaller places and yuan was the best bet.
Tell your son that these people make their living this way. If he is going to barter, 1-2 dollars makes no differance in our lives here, but does there. Driving a really hard bargain for something that is 2 for a dollar instead of 1 for a dollar doesn't leave you very satisfied. (I had my 13 year old son with me 4 years ago and the souveniers that appealed to him were all in this range).
Tell your son that these people make their living this way. If he is going to barter, 1-2 dollars makes no differance in our lives here, but does there. Driving a really hard bargain for something that is 2 for a dollar instead of 1 for a dollar doesn't leave you very satisfied. (I had my 13 year old son with me 4 years ago and the souveniers that appealed to him were all in this range).
May 21st, 2005, 08:39 AM
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We never used dollars in China. China has its own currency. I think it's somewhat rude to assume dollars are "better" than renminbi!
Visiting Chinese attractions, eating Chinese food, walking down Chinese streets, sitting in Chinese parks, interacting with Chinese people - and bartering in Chinese currency! It's all part of a wonderful and exciting experience! Leave your dollars at home!
Visiting Chinese attractions, eating Chinese food, walking down Chinese streets, sitting in Chinese parks, interacting with Chinese people - and bartering in Chinese currency! It's all part of a wonderful and exciting experience! Leave your dollars at home!
May 21st, 2005, 11:26 AM
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The whole world is pushing China to re-evaluate the Yuan upwards, and a lot of people expect that may happen anytime. The vendor will be stupid to take that chance and take your USD and give you a good price.
May 21st, 2005, 04:06 PM
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What would you say if someone offered you a currency that has slumped in value as much as the dollar in the past few years? The Chinese are a lot smarter than that. What I can't understand is why they keep accepting dollars in payment for the goods they sell us and turn right around and buy our U. S. Treasury securities with those dollars. The only thing I can figure out is that they desperately want to keep as many Chinese employed as they can, even if they have to accept the ever-weakening dollars in payment. Someday this dance will stop, and everyone will wonder what happened.
May 21st, 2005, 05:39 PM
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The reason your son was advised to bring dollars is because not too long ago, there were two separate currencies in China. Both were RMB Yuan, but one was the FEC or foreign exchange certificate. Foreigners had a separate "Chinese" currency from locals and this was the one that could be converted (albeit not freely) back to dollars. There was a hot black market for FEC and considerable advantage for shoppers since many vendors wanted to get their hands on dollars. Many students desperately wanted FEC or dollars to pay for TOEFL exams, college applications, etc. Now, the FEC is gone, and the RMB is somewhat convertible. The Chinese have gotten much wealthier and as RKKWAN mentioned, the RMB, which is currently pegged to the dollar, is likely to revalue in the immediate future. It already "floated" once right before the May holiday for a 20 minute period before the "glitch" was discovered.
Chinese merchants want RMB cash and while some will take US$, most will not. The dollar is set to lose value here.
From what I remember, your son is going to a rural area, so maybe that's why he was given this advice.
Chinese merchants want RMB cash and while some will take US$, most will not. The dollar is set to lose value here.
From what I remember, your son is going to a rural area, so maybe that's why he was given this advice.
May 22nd, 2005, 10:36 AM
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Okay everyone, you don't have to call me rude, I was just asking everyone to comment on advice my son got during his china travel group meeting. Since I didn't attend the meeting, the advice to barter only in US $1 bill and telling the kids that they would get a "better deal" struck me as wrong because everything i read including this board said the opposite. Moreover it has always been my practice to use the country's currency that I was visiting. Plus rkkwan you make a very good point that I had not thought of about the re-evaluation of the Yuan (which may mean that he takes a little bit more money with him).
LynneD, I have to respectfully disagree with your point, because the 1-2 dollars does make a difference in my son's life here. This kid has spent the last 4 months selling at least a thousand candy bars, washing cars, walking dogs, pulling weeds etc. to earn the money for this trip. On monday he mails in his final payment and believe me worked very hard for every $. The point of this trip would be lost if my husband I had just paid for it outright, so after my son talked to Frances Mayes (author of "under the tuscan fame" and who happened to be doing a book signing next door to where the introductory meeting was taking place), he agreed to a 3 to 1 split and the kid had to earn $1000 on his own plus any spending money. Knowing him he will be respectful in bartering and do the right thing. even now he seems to know money doesn't grown on trees and that his fundraising efforts have made a difference on his way of thinking.
Thank you all for your advice. He will take some $1, but I'll have him plan on bartering more in Yuan. well just a month left until the trip, I am sure you will here from me again, itsv
LynneD, I have to respectfully disagree with your point, because the 1-2 dollars does make a difference in my son's life here. This kid has spent the last 4 months selling at least a thousand candy bars, washing cars, walking dogs, pulling weeds etc. to earn the money for this trip. On monday he mails in his final payment and believe me worked very hard for every $. The point of this trip would be lost if my husband I had just paid for it outright, so after my son talked to Frances Mayes (author of "under the tuscan fame" and who happened to be doing a book signing next door to where the introductory meeting was taking place), he agreed to a 3 to 1 split and the kid had to earn $1000 on his own plus any spending money. Knowing him he will be respectful in bartering and do the right thing. even now he seems to know money doesn't grown on trees and that his fundraising efforts have made a difference on his way of thinking.
Thank you all for your advice. He will take some $1, but I'll have him plan on bartering more in Yuan. well just a month left until the trip, I am sure you will here from me again, itsv
May 23rd, 2005, 07:22 AM
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Sorry to butt in but I'm confused by the term 'batering' discussed on this thread here. Barter as I understand the concept means to exhange one item for another and money does not come into the deal...
Or are we talking about bargaining or even currency exchange here?
In anycase, itsv, I hope your son will have a wonderful and fulfilling time in China.
Or are we talking about bargaining or even currency exchange here?
In anycase, itsv, I hope your son will have a wonderful and fulfilling time in China.
May 23rd, 2005, 10:50 AM
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yeah, i was perplexed by "bartering". i think they mean bargaining or negotiating.
with no disrepect to the chinese who are usually very good with money, i don't think that the market vendor is concerned with future exchange rates and revaluation of RMB vs USD.
If your concern is trying to get the absolute rock bottom deal on every little trinket then i definately do not recommend USD. Trying to use USD will just confuse things and i suspect that he will come out behind in the end. Much better to stick with local currency and have a little fun with the bargaining but don't waste too much time strategising over it or stressing over how to get the very best prices on every little thing. (That said, i don't believe in grossly overpaying for things in developing countries as it corrupts local economies)
with no disrepect to the chinese who are usually very good with money, i don't think that the market vendor is concerned with future exchange rates and revaluation of RMB vs USD.
If your concern is trying to get the absolute rock bottom deal on every little trinket then i definately do not recommend USD. Trying to use USD will just confuse things and i suspect that he will come out behind in the end. Much better to stick with local currency and have a little fun with the bargaining but don't waste too much time strategising over it or stressing over how to get the very best prices on every little thing. (That said, i don't believe in grossly overpaying for things in developing countries as it corrupts local economies)
