Monday, October 3, 2011

Is the Chinese Economy About to Crash and Burn?

According to this commentator (see link below citing from a recent Economist magazine report), the answer is "yes" and what are some rather compelling arguments. Here is an excerpt from the Economist about growing hostility to foreigners:

The climate for foreign firms in China is starting to feel frosty. Costs are rising, regulations are growing more burdensome. Local competitors are playing rough. Some, like Cosco, a shipping giant, have brazenly tried to renege on contracts. Others have used their political allies to squeeze out foreign partners. One Westerner reveals that two foreign firms on whose boards he serves have recently been forced to leave the country shedding their assets in fire sales. China is much too big and booming for foreign firms to ignore, and plenty of multinationals are doing splendidly there. But this latest turn of the screw may not be the last.


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