Investing In China

I have always been leery of investing in China because of the country's complete abrogation of individual rights and the absence of any form of objective law. Yet I'm continually surprised that most large businesses vigorously downplay the risks and claim to see nothing but opportunity in China. This article makes the case that not only may there be no profits to be had for the particular Western businesses who invest there, but that eventually losses in China may prove to be a threat to the entire global financial system. Of course, any single article on its own is not enough to allow us to draw firm conclusions on so complex a subject, but it's definitely a different perspective, and one that gibes with overall philosophical principles. So caveat emptor to any prospective investors in China and here's hoping that they don't drag us all down with them.

Hat Tip: John Mauldin's Outside the Box