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This left shopping for handbags and watches – which turned out to be equally perplexing. On the street, the going rate for a ######## Calvin Klein watch is £1.80, less than a cappuccino. What invisible hand decreed this set of relative prices?
An even bigger puzzle were the luxury shops. In Beijing and Shanghai there are almost as many Louis Vuitton and Chanel stores as there are Starbucks and Costas. Everyone knows that in China there is the greatest luxury boom the world has ever seen. But when I walked past these stores, the only signs of life were squadrons of eager shop assistants. Westerners don’t shop there, as the stuff is much cheaper at home. But I didn’t see a single Chinese customer in any of the stores either.