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Strategies & Market Trends : John Pitera's Market Laboratory

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To: Jorj X Mckie who wrote (4865)	10/17/2001 9:31:56 PM
From: John Pitera	Read Replies (2) of 33421

and a bit of China news, as you and I have been discussing the Red Giant recently..... -------- As we have mentioned time and time again, while a protracted global slowdown has forced a good deal of retrenchment on the part of large multinationals, China has been rather insulated from this trend. Just yesterday, we noted that contractual foreign direct investment increased 30% year on year in the first nine months of 2001, a dynamic supported by a German Chamber of Commerce survey that revealed that 70% of German companies in China will expand their business next year. Not surprisingly, China's cheaper production platforms are a major attraction for multinationals that have seen their margins pressured by ever-increasing global competition, as well as pronounced lack of pricing power.

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