The Gap recently announced it was closing 20 percent of its U.S. stores, while tripling the number of stores it has in China. The retailing giant, the PHV Group, best known for brand names like Izod, Tommy Hilfiger, Calvin Klein, Arrow and Van Heusen, plans to open 3,000 stores in China.
Even an iconic American company like the Walmart is now pegging its growth on sales outside the U.S.
So is China replacing the U.S. as the primary market for consumer goods? And would success of U.S. brands in China end up boosting the American economy?
- Eswar Prasad, professor of economics at Cornell University and former head of International Monetary Fund's China division
This segment aired on October 26, 2011.