The cost of showing off China's culture and modernity to the world has been estimated at about forty billion US dollars. But Jin Yuanpu from the People's University in Beijing was sure the investment is worth it:

"Beijing and China are in a transition phase. Our city is developing in every area, like our whole country. The Olympics have given more strength and a precious chance to our social and economic development."

However, the professor admitted that the Olympics will probably only increase Beijing's economic power by 1 percent.

No impact

A recent study by the investment bank JP Morgan concluded that the Games would have hardly any impact at all and the Chinese economic engine would be booming without the Olympics anyway.

However, one thing is certain -- the Olympics will attract a throng of tourists to China's capital city. And the managers of international hotel chains such as Accor are already rubbing their hands in glee. Even hotels which haven't yet been built are almost fully booked, according to Accor China head Gerhard Zimmer:

"Our chain alone will have 4,000 rooms for the Olympic Games. The competition will be huge. Especially with Intercontinental, which is still the largest chain in China. But we've already signed 48 contracts for new Ibis hotels, which should be finished by 2008."

Recuperating costs

In terms of commerce, Beijing is likely to make more than any previous Olympic Games. The TV rights are more expensive than ever -- estimated at 1.7 billion dollars. Almost half of the takings will go to the Chinese organisation committee, and 51 percent will go to different sport associations and the International Olympic Committee.

The sportswear giant Adidas in one of the three German sponsors of the games. It will be dressing the functionaries as well as Chinese sportsmen and women. The hopes are on China's female volleyball team, the head of Adidas China Sandrine Zerbib explained:

"It's the only Chinese team which is both world champion and an Olympic winner. A legend in China. We've put videos about the volleyball players on our website. Before the World Championships, we hung a massive white volleyball top on a Shanghai skyscraper right in the middle of the city. People could send the team their best wishes by SMS and email which then flashed up on the top in red. By the end it was totally red. We got about 2.5 million wishes."

Adidas already has 3,000 shops in China and hopes to open another 2,000 over the next three years.

So whilst the Chinese government proudly shows a new modern China to the world, and human rights activists call for a boycott of the Games, it's business as usual for multi-national companies wanting to make an extra penny.