Hi Olive,
I agree with your points.
Structurally, China has never restructured its economy or its systems. Tinkered, yes. Restructured, no.
It does not, for example, have proper insolvency or bankruptcy laws in place (ie: as a measure of protection for creditors).
The gulf between rural (especially, in the western provinces) and urban (especially the south east coastal provinces) is enormous, and growing.
As for the N-E industrial belt, this is increasingly reflecting the state of East Germany immediately prior to reunification.
Most commentators also ignore that China is made up of a number of different cultures /languages /ethnic mixes. This in itself risks rising domestic tensions.
With non-performing loans through State Banks estimated at 40% of GDP, and a growing Government deficit (with high tax leakage and poor collection coverage), China has more than a few challenges ahead of itself.
- Forums
- ASX - General
- interest rates - rba bias
interest rates - rba bias, page-18
Featured News
Featured News
The Watchlist
MTL
MANTLE MINERALS LIMITED
Nick Poll, Executive Director
Nick Poll
Executive Director
SPONSORED BY The Market Online