Chinese people won't enjoy cheaper meals at Mcdonald's or Kentucky Fried Chicken just because China has joined the World Trade Organization (WTO), eastday.com reported Thursday.
This dispells the rumor that those foreign fast food chains will cut prices.
Now that China has joined the WTO, more than 5,700 products are expected to see a price cut as import tariffs drop. Tariff cuts will come on cars, home appliances, grains, fruits and meat products.
The tariff cuts won't have any impact on fast food prices because the ingredients used by both Mcdonald's and KFC are locally produced. Up to 97 percent of Mcdonald's ingredients are purchased locally. The proportion of domestic purchases by KFC has reached 95 percent with 100 percent of its chickens bought in the country.
The tariff drop has little effect on us, said spokesmen with Mcdonald's and KFC.
They foresee no price cuts because of WTO.
(eastday.com January 17, 2002)
