Thread,
I read the HK and China news most every day. The appointment of Zhu Rongji as Premier indicates the direction China is going. He is the one that's been pushing thru the new economic reforms, making drastic cuts in the bloated bureaucracy (4,000,000 job cuts coming up), spending on new infrastructure, forcing banks to get rid of bad loans, and other economic measures. He's a no nonsense leader that has one goal - improving the economy of China thru capitalism. There will be no tax increases in the near future. There will likely be new incentives for growth, particularly for the well managed companies like Deswell.
All should read the profiles of Zhu and also of Hu, the new Vice President and probable future Premier. At ages of 60 and 55, they represent the new China. I can't recall his name now, but there's another future leader that's going after corruption that's also impressive. All the old timers are on their way out. There's even a new age limit of 75 to stop them from hanging on.
China is taking a very hard line. State owned businesses are being privatized, cut lose and it's sink or swim. Banks are undergoing severe austerity policies for stabilzation. The government is spending monies on new roads, communication, and other infrastructure. It's a whole new ball game.
Ron
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