Dear All,
Last Friday, I was lucky enough to be invited to PIMCO Summit 2014. The equity side of its business seemed to believe in investing in China. I found this article to be really interesting. As a Chinese born, I should support China’s development; however, I have always hesitated due to the fact that China is still under communist policy – I am afraid of Government can take away anything ones have earned. This article gives me a different perspective why there are other reasons may be we should wait…. Are you bullish or bearish?
http://globalpublicsquare.blogs.cnn.com/2012/11/28/what-we-get-wrong-about-china/?iref=allsearch
Yili Kilpatrick
A very interesting article Yili, and always interesting to hear personal reflections, particularly when they come from a well-informed native.
for a competing view, take a look at this excellent book that just came out:
http://www.amazon.com/Can-China-Lead-Reaching-Limits/dp/1422144151
I tend to lean towards the later views, but as you can see this is a hotly debated issue.
It has been rather incredible to watch the pace of economic reforms in China, and resulting growth, particularly alongside the lack of political reforms made over that same time. I know that many commentators will argue over whether the “bureaucratic reforms” that have been passed by the Party can really be construed as political reforms. Given the size of the population, I can’t really argue with any multinational that has decided that it is just unthinkable to pass on the economic opportunity to serve the Chinese market. Over time, it will be interesting to see just how much sustained growth foreign companies are able to realize in China (from Chinese consumers), separate and apart from the benefits derived to date from the use of the low cost manufacturing base (and the benefits that that provides to earnings). Over the past few years, there has been an interesting disconnect between the growth in the country’s economy, and the returns (or lack thereof) afforded to investors in the Chinese equity markets.
It will continue to be a focus for the world to see just how the Party manages leadership of the country – particularly how it continues to meet the needs of over a billion citizens for food, education, jobs, energy and water.
-William Ott