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Strategies & Market Trends : Greater China Junior Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Condor who wrote (327)	10/19/2003 8:06:01 AM
From: Crossy	Read Replies (1) \| Respond to 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

To: Condor who wrote (327)	10/19/2003 9:30:22 AM
From: Julius Wong	Read Replies (3) \| Respond to of 1992

I am a professional engineer. From an engineer's perspective, a country must provide a stable and reliable infrastructure before substantial industrial development. From 1993-2003, the President of PRC, Mr.Jiang, and the Premier, Mr. Zhu were trained in electrical machinery and electrical engineering. They planned and developed a sound infrastructure in China to support industrial development. However, the speed and the amount of foreign investment funds poured into China exceeded all expectations. Money can move at much higher speed than the design and construction of power plants, the exploration and developing mineral resources, and other forms of resource requirements. The Chinese government must maintain and expand the infrastructure to meet the needs of rapid industrial development. The current Chinese leadership that took power in March 2003, Mr. Hu (President of PRC) was trained in a water resources, and Mr. Wen (Premier of PRC) was trained in geology. I think they have good appreciation on industrial development processes.