From the beginning, it was clear that the Chinese believed that the Olympics would have an enormous impact on the Chinese image, economy, and trade.  PRC Premier Wen Jiabao said earlier this year that the Olympics in China provided an opportunity to display to the world how “democratic, open, civilized, friendly, and harmonious” China is.  The monetary investment on the Games is staggering.  

Those investments include:

• $40 billion on the infrastructure alone from 2002-2006
• $1.1 billion on transportation improvements, including expanding Beijing’s subway system, completing the city’s light rail system, and constructing and refurbishing 318 km of city streets.
• $200 million to demolish old housing and urban buildings
• $3.6 billion to transform Beijing into a “digital” city
• $12.2 billion to improve China’s environmental issues

(Statistics found in The China Business Review, ”The 2008 Olympics’ Impact on China”, by Lee M. Sands)

This is obviously just a fraction of the major spending, but China’s investment cannot be overlooked.  Will this investment bring more tourists, more foreign direct investments, and higher trade volumes?  It is too early to tell, but my guess is YES.  The international viewing audience for the Games was enormous, and the consensus from those viewers was extremely positive.  The Chinese have never been looked at in such a positive light.  Expect China trade volumes, FDI, and tourism to continue to grow at exponential rates.

This entry was posted on Monday, September 15th, 2008 at 12:38 pm and is filed under China Trade. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.