Far too many people view China these days through rose-tinted glasses. The smart money is beginning to wonder if this is not a mistaken view.
Stratfor, a private and terrific intelligence shop, has this to say today:
Unrest appears to be on the rise in China (or the media is finally paying more attention). Beijing has been unable to contain or control the economy, the banking system remains seriously flawed and bubbles are growing throughout the economy. What is the breaking point for Beijing? Will the country's economic collapse follow the Japanese model of slow burn? Does China have the underlying social stability to withstand a long, drawn out economic decline?
This is a situation worth keeping an eye on. The implications for India are obvious.
Friday, November 19, 2004
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