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To: Lizzie Tudor who wrote (151462)1/11/2003 1:21:53 PM
From: Victor Lazlo  Read Replies (1) of 164684
 
Lizzie,
Overcapacity in just about every sector is huge right now in China, just as it is in the US and in Europe.

Pricing power in just about every sector is practically nil in China, just as it is in the US and in Europe.

Chinese people who have any extra income left over after paying for bare necessities are saving it, ala Japan.

And tarrifs and other trade barriers that have protected Chinese co's for years are now being pulled away in compliance with WTO membership rqmnts.

The situation in China looks too good to be true, with so many mainstream western journalists fawning over the development there.

And if it looks too good to be true, ....

I wonder what the true budget deficit picture is for the Chinese govt. And the volume of deadbeat 'loans' that Chinese banks are carrying on the books cant be a much prettier picture, either.
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