Tuesday, 5 November 2013

Should China Be Discounted?

Our Research team has found some worrying  trends wrt China as an economy. The growth rates in china are in the range of 7-8% which is way too higher than other economies but way too lower than 9%-15% which China was clocking earlier. 

So what were the reasons for such high growth rates?
Our research suggests these three factors:
1) Cheap Labour
2) Cheap loans
3) Starting at bottom of the growth pyramid.

Current Scenario:
1) Cheap labour is available elsewhere too.
2) loans going bad
3) "late mover" advantage chickened out
The Communist ideology kept the growth rates down for almost 40 years and then China saw highest growth rates but now what is the pertinent question!

It will be interesting to see what the ruling party decides and our research tells that any decision will have a global impact.

Considering this: should we discount China?

Other Questions:
1) which Management Style China follow?
2) slowdown means is China joining the big league?
3) rural china: opportunities galore.

Read more in coming days....

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