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

To: MikeM54321 who wrote (1697)	5/26/1998 10:28:00 PM
From: Ron Bower	Read Replies (1) \| Respond to of 2951

Mike, Thanks for the article. I have long stated that 4 events contributed to the current situation in Asia. The first was China's sudden change to open markets and aggressive adoption of capitalism. The 2nd was the devaluation of the Rmb. The 3rd and most important was Japan's failure to realize that China was not another opportunity for profits, but a new and aggressive competitor. The 4th was the coverage by the media that created a crisis out of a situation that could have been resolved. I feel the US is also guilty of ignoring the situation. The US has been riding high, but competition in world commerce has made a drastic change in the last five years. Just as the Japanese companies invested heavily in the ASEAN countries, US companies are seeing China as an investment opportunity and a potential customer instead of realizing that they are competitors. Each dollar that goes from the US to China circulates thru their economy and supports companies that compete with other US companies. To paraphrase Lenin, "a capitalist will sell you the rope even though he knows you intend to hang him with it". The US government is doing nothing to stop the flow of monies into China by major corporations. As the result will likely be a decline in US exports and a weakening of US economies (less dollar circulation), I feel it prudent to invest in China's inevitable growth. I really appreciate your sharing the articles you have posted. Thanks. JMHO, Ron