I love shopping in China, where true capitalism reins supreme. I love the back streets, the little shops, the street hawkers, and the teeming masses looking for a bargain. It makes my blood flow, and I can feel really alive.
Yes, they have big malls with Olay, L’Oreal, Gucci and Ralph Lauren signs everywhere you look, even if shopping in small towns (remember: small towns are 5 million people and below). But you won’t find any true bargains there, and the likelihood of bargaining in general has been forgotten. You might as well be in New York, and who wants that.....
Shopping in a street market is the ‘hot’ action - at least for me. No, you aren’t going to get a ‘real’ Gucci bag and that Polo shirt is truly a fake, but the action is fun, the bargaining is real, the people are truly friendly, and anxious to do business with you. The main thing is the bargaining. If you don’t haggle over the price, you are just another dumb foreigner who deserves to be taken advantage of, and you instantly lose face.
In these street markets there are no price-tags on anything, so I always start by asking ‘Doa Shao Chien’ or how much money does this cost? The vendor will immediately see your ‘foreign face’ and state a ridiculously high price (Note: don’t worry if you haven’t learned the numbers yet, all vendors have pocket calculators). Then I immediately take 10% of that number and counter offer. Which of course is turned down with a small protest, only to be followed by a counter offer. If I think it’s still too much I say ‘no thank you’, and walk away - remembering to always be polite.
Now the affect of ‘walking away’ does two things: First, by walking away you’re saying that their counter offer is ‘not acceptable’, and second the vendor loses some face by not appearing ready to bargain. I have found that ninety percent of the time, the vendor will hurry to call you back with another (lower) counter offer - in other words they want to sell and are willing to continue haggling over the price. When this happens, you have gained face, and the upper hand in this bargaining process.
Also, you can be confident that there is another shop (probably) within 100 feet that will offer the very same product, and you can try your bargaining skills again. Many of my Chinese friends have marvelled at how cheaply I purchase items and wonder at my secret. Which is quite easy.... Be prepared to ‘walk away’  - - every time. Because I can almost guarantee you, if one vendor has it, then hundreds of other vendors have those very same products, and one will certainly be hungry enough to give you a deal. Because while winning the haggling battle over the price is important for gaining ‘face’, selling to a ‘foreigner’ also gains the vendor ‘face.’  So be polite and friendly, but also be prepared to walk away.

One downside to shopping in China is that all transactions are cash, except in the big cities I told you to avoid. This means you must carry cash, which also makes you a target for pick-pockets and thieves (just like New York City), so be careful.

Next: More travel tips......