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Strategies & Market Trends : HONG KONG -- Ignore unavailable to you. Want to Upgrade?

To: Tom who wrote (1518)	4/4/1998 12:12:00 AM
From: Tom	Read Replies (1) \| Respond to of 2951

Investing in China's Infrastructure Development. I may have mentioned it before, but believe it is worth repeating that China's infrastructure development is a national security issue. Beijing could not be more serious about it; especially the transportation infrastructure. Logistics The issue here is two-fold: Not only is an efficient ground transportation system (roadways, railways and bridges) an aid in industrial development, but it is also of primary importance to military tacticians. And I have to believe that some of China's military leaders (maybe some of the recently promoted generals) are not only strategic but tactical planners as well. It would be rather difficult for a nation's armed forces to mobilise and position units to defend against an enemy, whether that enemy is from within or without, were they lacking the transport system to do so. Then, too, there is the re-supply of those units to deal with. It may also contribute that China is, as have they always been, more concerned about their ability to defend than aggress. Of course they could always just nuke their opponent. But that's not always an option. Fortunately. Double-edged Sword So, build...build...build. Go, go, go. But beware. Profit margins for enterprises involved in transportation construction can be phenomenal. Yet the cost burden the company carries at any one time can be so great, that all it takes is a mistake in one critical element of the construction and the company can bankrupt itself...quickly. The risk is one reason much of the ongoing work is being accomplished by joint ventures, e.g. CKI and NWI. It is also the reason that Cheung Kong and New World spun-off their construction units. Good night.