Yesterday marked China’s accession to the World Trade Organization, which drastically lowers the requirements for foreign retail investment. Almost every Chinese city is now open, tariffs are reduced, the minimum investment has been lowered, and partnerships with local businesses are no longer required. Retail sales in China have been increasing by at least 10% each year, with foreign retail revenues making up 3.5% of the total. But those foreign retailers report strong demand: France’s Carrefour department store chain is the largest outside retailer in China, and reported sales were up 25.7% in 2003, while Wal-Mart, the #2 outside retailer with 33 stores, reported sales of $707 million for 2003. Combined with a growing discretionary income, the light is now "green" for Apple’s expansion of retail stores into China.

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