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Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (1430)	11/14/2003 12:12:56 AM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

A typical Indian attitude<g> --Take heart, China is no big deal M Ramesh THE more you learn about China, the stronger is the impression that fears about long-drawn-out, intense competition from the Dragon are misplaced. China, the world's biggest enigma, may after all be no big deal. Dr Gerard Lyons, Chief Economist, Standard Chartered Bank, who was in Chennai recently, provided some revealing insights into what is happening in China. He did not exactly say that China is a bursting bubble, but it is possible to draw such an inference. Consider this: 85 per cent of bank credit in China is not commercially driven. Over half the loans are not repaid at all. Non-performing loans equal 15 per cent of GDP, compared to about 5 per cent in India. This has got to change — Dr Lyons reckons that international pressure will make China change this sooner than later. When that happens, the Dragon's competitive edge is bound to get a little blunted. thehindubusinessline.com