Bill is right, though that China itself is pristine.
That's why we never hear about corruption, improprieties from the institution. It is always some bad actor, or a State owned trading company gone bad.
Out in these lonely outposts, there is little to do but read Ian Fleming, fear the consequences of failure to your trading company, and get on the shoe phone to Spectre (or Dr. Evil, hi M&A successor).
Fear the sea bass!
'Pristine'? By what definition of the word?Originally Posted by Steve the Planner
The Chinese remain largely inscrutable to most outsiders.
The obverse is that to most Chinese the intentions of the western countries are difficult to understand and likely to be misinterpreted.
Is your last paragraph an attempt at humour or what?
JMA:
Austin Powers. Dr. Evil. Deadly shark tank (but couldn't get a permit for sharks). Sea bass with lasers.
OK, Broader allusion: Fear the Turtle! University of Maryland Terrapins---the folks with the modern football fashion styles.
Austin Powers?
I think we have a generation gap here Steve.
I think a lot of China's success is smoke and mirrors and over time a large number of hollow companies will be exposed as being hollow. They are not transparent, so buying any Chinese stock is high risk.
The fact that China continues to invest in the U.S. indicates something, and it isn't just to keep us a float economically, if they were as strong as some of our folks make them out to be they wouldn't have to depend a stable U.S.. The Chinese bubble will bust soon enough, and that will probably be a greater threat to us than its continued growth.
Last edited by Bill Moore; 10-05-2011 at 06:12 AM.
Why does China invest abroad?
My understanding is that China decided a few years ago that returning it's income from exports to China would set off inflation, alongside distorting its planned investment strategy and it sought non-Chinese investments as a potential source of income. Many of those initial investments were not in natural resources; the only one I can recall was a mobile phone provider and this led to serious concerns over national security.
davidbfpo
The macroeconomic answer is that trade balance surplus = capital export.Why does China invest abroad?
So basically they invest abroad because that's the only alternative to importing goods once you've got cash from net export sales.
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