Is the dragon cooling down?

A recent news article on Xinhua.com, China's official news agency announced an expectated deflation in the Chinese economy and pointed to several indicators such as falling profit margins & decreasing domestic consumption as likely contributors.

The article talks about how a massive 6% of this growth in the first half of 2005 has been mainly in the overseas geared economy and that only 3.5% was domestic growth. The Chinese economy might take a hint or two from what a lot of FMCG consumers are learning in India. To stimulate a largely stagnant but economically potent rural market, you need to sell to them and not at them. That is to say - dont seduce them with what the 'pax urbana' are buying, make them buy products designed for them.

Here's an interesting article on what two highly successful FMCG companies are doing in India.