Wednesday, June 20, 2007

China: a winner you shouldn't back?

This 14 June article by Doug McIntyre for Investopedia explains some of the pitfalls and concerns for those who would like to invest in China.

Another thing to remember is that many Chinese companies make scarcely any profit, which is why their banking system is carrying a lot of poor-quality debt.

The real profit appears to be, not in China's factories, but in transporting their goods worldwide, and selling them: not sheds, but ships and shops. The traders are surfing the wave of wealth out of the West.

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