Wednesday, August 03, 2011

Roach loves China...

This article focuses on China's success, citing the main factors as the design and strategy of the Chinese Communist Party. It cites 10 reasons, the following being the most important (and the most quantifiable on his list)

Foreign direct investment. Modern China has long been a magnet for global multinational corporations seeking both efficiency and a toehold in the world’s most populous market. Such investments provide China with access to modern technologies and management systems – a catalyst to economic development. China’s upcoming pro-consumption rebalancing implies a potential shift in FDI – away from manufacturing toward services – that could propel growth further.

This is also the biggest danger, and one in which the Chinese seem determined to sabotage. The world is now aware of the liquid concept of "law" in China and is positioning accordingly. The decline in FDI should be gradual, as none of the players wish to yell "fire" in the crowded theater.

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