The perils of doing business in China - 14 Aug 09

China's growth as a global powerhouse of manufacturing has attracted countless foreign companies looking to do business there.

But in our last report on the growing influence of China, Al Jazeera's Tony Cheng takes a look some of the problems waiting for foreign companies in China.

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china business foreign investments tony cheng aljazeera corruption Tai Wan investments investors african traders ghana Honk Kong

Could China be The Next Bubble to Burst ?

Is China a Bubble in the first place ? a nation whose GDP will continue its increase at a steady rate of around 6% while the rest of the world is in recession ? will china survive without a US market ? according to Jim Rogers , not only will survive this crisis but it will become in the short medium term the world super power and replace the USA , but the following article gives a whole other perspective and according to the author China is the Next Bubble to burst just like japan did in the 90s :

CHINA WILL BE A BIGGER BUBBLE THAN JAPAN

Superb analysis out of SocGen analysts this morning. Dylan Grice says the Chinese economy has many similarities to the Japanese economy before it imploded in the 90’s. He cites 8 reasons why the Chinese economy is likely to be an even larger implosion than the Japanese economy:

Studying the lessons from Japan’s lost decade(s) is key for anyone seeking to understand today’s post-bubble world. But a closer reading of Japan’s financial history illuminates today’s China far more. In the early 1980s, on the eve of its financial liberalisation, Japan was the rising power from the East set to overtake the West. Younger and growing rapidly, it was still a decade away from its climactic and catastrophic bubble peak. This is where China is now.
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