Ding Dong -- The New Sound of China Opening

Ding dong, Avon calling.  Forbes Magazine just reports that an official with China's Ministry of Commerce was quoted as saying that it has approved Avon's application as the first direct-sales firm in China.  Avon has been allowed to carry out a pilot direct-sales program in select parts of China since April of last year.  China opened up door-to-door marketing on December 1, 2005, allowing direct sales for the first time since 1998. 

Only a couple of hours before seeing this news on Avon, I received a somewhat scathing e-mail from a reader excoriating me for always touting China's increasing openness to foreign direct investment (FDI).  This person accused me of having no appreciation for China's history, particularly the Boxer Rebellion and talked about how China would never really open up to foreign business.  I have never claimed any special knowledge of Chinese history, but just as countries like South Korea and Japan have opened up their countries to outside business despite their own histories of isolationism, I find it hard to believe China cannot do the same. I love citing Santayona's famous quote that "those who ignore history are doomed to repeat it," but at this point, I would like to add the unattributed and less famous tag line that "those who study history are doomed to know it's repeating."  Cosmetics sales in China are expected to rise 15% annually through 2008.