Austerity measures implemented by the Chinese government to control inflation have, in the short run, had an impact on foreign companies planning to enter the Chnese retail market. However, it is unlikely that medium and long term plans of foreign companies will be affected by the move. Goldion Holdings, a Hong Kong based apparel and accessories manufacturer with over 600 sales counters in China, did not suffer daverse consequences dor to the government's austerity measures, though forecasters had prodicted that it would. he Carsac Group, the distributor for Etienne Aiger, Basile, Mandarina Duck, Fratelli Rossetti, Prima Classe, Cirruti 1881, and Lavin, will set up three concession counters at the Shenzen sibu Department Sotre in Beijing Palace Hotel. The Prestige Group, which markets fashion products under the name Cour Care, will make a $10 million investment in refurbishing a five stroy department store complex in one of China's noorthern provinces. The company will eventually open retail shops in Shanghai, Tianjin, Dalian, Sheyang, and Changchun, German men's wear manufacturer Hugo Boss will open its first stores in China in 1994. In the first six months of 1993, retail sales of apparel in China increased 16.7 percent compared with 1993.