A2M 1.23% $6.56 the a2 milk company limited

It is important to remember that doing a business in developing...

  1. 132 Posts.
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    It is important to remember that doing a business in developing countries is not that strait-forward. Thou, China is a signatory of WTO (late comer) but lot of state protection and govt can pull the rug from any business without any reason and many times on corruption charges (which is part of culture and can be easily used to bring down the business. How many examples are there (crown, Rio, ect). China has been pretty good for last 7-8 years because they always has balance of trade in their favour(they still have) and they want to integrate to rest of the world for their own expansion however recent times their manufacturing is stagnant while their population start spending money on leisure, imported goods and food, tourism, overseas investment,etc....money start flowing in rapid pace. Also things will be uncertain after Trump take over. I assume there will be a bit tough time for overseas businesses there!!!

    Given china state owned or allied businesses to state is buying lot of assets overseas (particularly in Aus) to secure their future in energy, food supply (dairy, sugar, leafy veg, etc), I am not sure what will be their policy to terrif on those businesses compare to overseas owned businesses? Big question mark...It is not going to that rosy to make easy money in China as it looks...


    All IMO. DYOR
    Last edited by Mac.k: 20/12/16
 
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