Amway Corp yesterday said household and personal products sales in China accounted for one-seventh of its global revenues and would eventually surpass those in the United States.
But legislation to allow resumption of direct selling - the method Amway uses in the rest of the world but was banned by Beijing in 1998 - remains on the backburner, pending the reorganisation of the government.
Last week Doug DeVos, president of Amway parent Alticor, came to Shanghai to open its 100th retail store in China. It plans to open a further 20 in the next six months.
'Global sales last year were US$4.5 billion,' a spokesman said. 'Sales in China account for one-seventh of that. The most recent figure we have for China is 4.8 billion yuan (about HK$4.5 billion) in 2001. Sales in China will certainly exceed those in the US in future.'
Elsewhere in the world, Amway sells its products through individuals who build up their own customer networks. It does not have retail outlets or use advertising.
Along with other foreign companies, Amway started a similar system in China in the 1990s but Beijing banned direct selling in 1998, saying it led to widespread fraud, cheating and social unrest. This ban is rigorously enforced.