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Strategies & Market Trends : Greater China Junior Stocks
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To: Condor who wrote (327)10/19/2003 8:06:01 AM
From: Crossy  Read Replies (1) of 1992
 
Condor,
let the naysayers "voice their concern" which I think is way off target. I would be concerned if "hot money" (shortterm speculative funds) were involved. With FDI (Foreign Direct Investment) you easily see that it'S not the shortterm speculative financing involved... Its the typical path followed by ALL TIGER ECONOMIES .. take a look at Taiwan, Singapore.. IF they just spent on consumption then they would stay a non industrialized country forever.. A proposition way off for China, our sleeping dragon.

The article you linked to is one of the most china-hostile, alarmist pamphlets I ever read. For someone living in stagnant Europe, I can assure you I would LOVE to trade in China's economic growth rate with our current environemtn. Any economist (regardless of leaning) would underwrite the basic assertion that FDI is INVESTMENT (geared at FUTURE productivity - hence growth) whereas CONSUMPTION is just .. consumption ! - The more you spend on consumption the less future growth you inherit - the less the economy can grow and the less future goods could be produced AND CONSUMED !

In essence China is doing something very prudent - holding back consumption now for consuming more tomorrow. Prudent because this allows investment and a better future..

sorry but I cannot find any symapthy for that article..
CROSSY
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