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Martin: Yeah that sounds great. I’m looking to seeing some of the other parts of China.
Tony: Yes, I think you’ll be really impressed by the of development in these second-tier cities.
Martin: Speaking of that, what’s your view on the immediate economic here?
Tony: Well, the headline figures, except for , all look great. Overall GDP is up 12%. Growth in is robust.
Martin: Uh huh.
Tony: But inflation is hitting basic food prices hard – for example, the CPI in Shanghai is up 8% on last year. That said, so far, it’s mainly affecting lower income .
Martin: So do you have any concerns about inflation affecting the of non-essentials?
Tony: Not particularly. At this point, income growth in China’s new middle class is still strong.
Martin: I see, but growth in this area is key to our here. It seems to me it’s something we can’t just rely on published for.
Tony: Yes, definitely. Our market research is directly at middle-income demographics.
Martin: Okay, well I look to seeing the outcome. Now what’s your on the long-term outlook — what are some of the challenges you see?
Tony: Looking beyond the Olympics, which will provide an obvious , there’s three main areas of concern – Jobs for farmers, inflation, and the income between rich and poor.
Martin: I see. And what about political ? Do you think issues like the widening income gap you just mentioned may be a ?
Tony: Well, it’s certainly going to increases on society, but I think the real challenge will be economic growth to provide enough employment for the masses.
Martin: Yes, well, thanks Tony. That’s helped reassure some of my concerns – I’ll be sure to share your views with the executive committee.

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