JLarkin

The China 'Bubble': Buy, Sell, Or Hold?

I agree with Susan. After a decade or so of working with manufacturing companies in China, one sees the poor practices everwhere. Government stimulus will drive the Chinese economy for a while, but then what? Maybe foreign demand will come back and everything will be ok, but I'm not so sure.

2,400 toy factories in Dongguan have been decimated to around 1,200 now. Plants closed, workers rioting, the managers ran away to HK before giving workers their final paychecks. Lead paint, falsified reports, etc. This is what goes on. China will hide a lot of their problems, but eventually they will come out.

In the long run, maybe 10-20 years, China will realize its potential, but that day is not today.