Friday, December 31, 2010
To Bust “The China Inc.”?
In 2001, Gordon G. Chang predicts the collapse of China (The Coming Collapse of China by Random House). Nearly ten years has past, where is the collapse of China? Recently, most economists, governments, and experts expect the Chinese economy to continue to grow in 2010. But, James S. Chanos, a wealthy hedge fund investor of Kynikos Associates, predicts the end of China Inc. According to the New York Times (8 January 2010) China looks like Dubai times 1,000 or worse, and Beijing is cooking its books. Chanos has earned his reputation by foreseeing the collapse of Enron, problems of Tyco International, the Boston Market restaurant chain, and home builders as well as some world’s biggest banks. However, the Chinese society is more sophisticated than any Western societies. In term of the population, economic structure, and governmental transparency, China is relatively more complicated than any Western countries including Japan. China does not look like any western nation at all. The bubble of the real estate in China is real, but the collapse of the China Inc., might not be true. To be a true Chinese experts requires an understanding of the history, culture, society, and politics etc., of the Middle Kingdom.