Doing business in China, or contemplating it? This article is well worth the read-
Months of turmoil in the Middle East have focused attention on two points. First, authoritarian regimes are inherently unstable. Second, this poses some significant problems for businesses. Consider managers trying to evacuate staff, safeguard physical property or keep supply chains operating as smoothly as possible.
Think it couldn’t happen in China? Four months ago, no one would have predicted imminent mass unrest in Tunisia, Egypt, Syria, Bahrain, Yemen or Libya, either. While signs of discontent with those governments were obvious, the authoritarians seemed by all accounts to have the situation firmly in hand.
That is precisely the case in China today, too. Disaffection over inflation and official corruption are rising rapidly, while the government has further reduced, to 7%, its official growth target for the year. Beijing clearly is worried, to judge from the lengths to which authorities have gone to suppress the whiff of any Jasmine protest.
Read more in the Wall Street Journal.
TrueblueNZ 
2 responses to “China Collapse- A Businessman’s Guide”
Speaking of which, did you catch up with this the other day, Red?
And here I was thinking we needed more employment opportunities in New Zealand …
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We can learn alot from the development of the Korean and Japanese economies that followed a state lead rapid growth policy, it works for a while until the growth hits a ceiling… Given the evidence on Korea and Japan I read in an article in the economist China is set to top out with a GDP of $10 trillion USD (about twice it’s current size), Korea quickly deregulated and continued growth, Japan didn’t and now has the highest debt to GDP ratio in the world and two lost decades…
What will happen when China tops out..? Japan and Korea are relatively free and democratic countries… China could well descend into revolution… Don’t forget they also have the two tier citizenship where their country citizens are not allowed into the cities and the opportunities there – breeds a lot of resentment among the poverty stricken rural population…
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