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Coca-Cola Helps to Boost China's Economy
Coca-Cola has boosted economic growth in China by increasing employment and government tax revenues according to a study by Beijing University, Qinghua University and the University of South Carolina.
The study said that since 1980, when Coca-Cola was allowed to re-enter the Chinese market, it has provided 410,000 new jobs in China. In 1998, only 14,000 Chinese worked forthe world's largest soft drink company, but roughly 30 times that number were employed by Coke's independent suppliers, distributors, wholesalers and retailers in China.
Every year, the central and local governments collect 1.6 billion renminbi in taxesfrom Coca-Cola either directly or indirectly.
"Coca-Cola's direct employee, tax payments and output, while significant, are only the tip of the iceberg in China," said Douglas Woodward, an economics professor at the University of South Carolina and co-author of the report.
Coca-Cola also increases China's output by 30 billion renminbi annually. Coaca-Cola's direct output in China is worth 8 billion renminbi.
Coke has 30 manufacturing facilites in China.
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