Thomas Friedman writes today about the "disappearance of an internationalist, pro-American business elite." Why have American CEOs exited the American political stage? According to Friedman:

In part, this is because boardrooms tend to be culturally Republican - both uncomfortable and a little afraid to challenge this administration. In part, this is because of the post-Enron keep-your-head-down effect. And in part, this is because in today's flatter world, many key U.S. companies now make most of their profits abroad and can increasingly recruit the best talent in the world today without ever hiring another American.

Friedman worries about American business and has his eyes on China and India. Rightly so. One data point in the same newspaper: a report on Chinese malls. Since visiting China last year, I have been casually following economic and political developments there. Like almost everything in China, the scale of mall development is difficult for Americans to fathom: "The South China Mall - a jumble of Disneyland and Las Vegas, a shoppers' version of paradise and hell all wrapped in one - will be nearly three times the size of the massive Mall of America in Minnesota."

And this: "Already, four shopping malls in China are larger than the Mall of America. Two, including the South China Mall, are bigger than the West Edmonton Mall in Alberta, which just surrendered its status as the world's largest to an enormous retail center in Beijing. And by 2010, China is expected to be home to at least 7 of the world's 10 largest malls." (Check out the slide show.) It's too early to say whether Chinese developers are overbuilding retail space, but with a burgeoning middle class, the demand for increased shopping opportunities is undeniable.

Of course, all of this might be good for American and European companies, whose goods are highly desireable among the Chinese. From fast food to fashion, the Chinese are westernizing and could lift many American companies along the way.

The (North) American response comes from Nader Ghermezian of the Triple Five Group, which owns the Mall of America and the West Edmonton Mall in Canada: "We are also expanding the Mall of America. There's going to be a Phase 2."

But the most frightening aspect of the the coming mall wars isn't the prospect of doubling the Mall of America. It's this: "China's increasingly affluent young people are adopting the American teenager's habit of hanging out at the mall." Shudder.

Politics | Bookmark

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8345157d569e200d834234f2853ef

Links to weblogs that reference Mall Wars:

1. Posted by Herman Krieger on May 25, 2005 @ 10:21 | Permalink

2. Posted by Herman Krieger on May 25, 2005 @ 10:23 | Permalink

3. Posted by Ann on May 25, 2005 @ 15:52 | Permalink