Experts and business people attending Franchise Symposium on November 18 all believe that franchises will become a favorite marketing pattern in China in a few years.

Zhang Yuqing, a high-ranking official with the Ministry of Trade and Economic Cooperation, said that the franchise pattern provides opportunities for the inflow of overseas capital and technology, which will be favorable for upgrading China-made products.

Xiang Xin, deputy director of the Trade and Marketing Department under the State Economic and Trade Commission, said that with name-brand competition becoming stiffer these days, franchising has found favor among investors here and abroad.

Currently, China has more than 1,500 chain stores with annual sales exceeding 100 billion yuan, and the industry continues to grow at a rate of 40 percent annually, he said.

According to Dr. Hans Lang, president of the German Chain Store& Franchise Association, franchising is a marketing pattern " suitable for China's current development."

He said that after China joins the WTO, foreign investors will find more business opportunities in developing franchises in China, and that franchising is not restricted by trade or regions.

Li Xihua of the State Administration of Internal Trade said that in China franchising was born out of the fast-growing chain store sector, and now covers every aspect of the national economy, from education to home remodeling.

However, he pointed out, China still needs specific laws to standardize the sector, and the shortage of internationally competitive brand-name products, professionals, and quality services stand in the way of the full development of franchise businesses at present.