Sober Realist

Even the Price of Tea Is Controlled in China

Nice article on the limitations of investing in such a centralized command economy. China is export dependant and lacks a developed internal market. It's top down decision-making prevents new, innovative approaches to problems. The one-party rule also preserves the corruption that is endemic in the system. With a gini coefficient of .46, the masive income disparity in China is approaching that of some impoverished African countries. Their vast cheap pool of labor will come back to bite them. Note also that due to China's massive environmental problems, cancer has become the number one cause of death in the country. Their water problem is now at a crisis level.
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