In an earlier post, I explained why I’m still bullish on China’s economy. But as the events of the past few months have shown, the risks of economic disruption are real. Here are several potential risks that could throw China’s economy off track. While the likelihood of all of them occurring is low, they are worth keeping a close watch on.
There are several reasons to be positive about China's economic situation.
China’s State Council published its latest opinion on SOE reform.
China’s annual online-retail sales passed those of the United States in 2013. By 2018, they are estimated to reach about $610 billion—passing Europe and the United States combined. Yet though the market is vast, succeeding in China is far from easy.
Across multiple sectors, state-owned enterprises are coming together, merging to create some of the largest companies in their sector anywhere in the world. For example, China Shipping is merging with COSCO to create one of the world’s largest shipping companies. China’s two manufacturers of rolling stock merged to create a domestic monopoly as China Rail Rolling Stock Corp. COFCO merged with Huafu in food processing. China Power Investment Corp merged with State Nuclear Power Technology Corp in energy. And the list goes on.
While it has always been incredibly tough to be the CEO of a Chinese state-owned enterprise, being a leader in the telecom sector today seems particularly challenging.
Gordon sheds light on how some Chinese officials are evaluated.
The Chinese consortium Tzaneen International recently announced that it was in the final stages of negotiating to buy Ciudad Real airport in Spain, 4km runway and all, for about US$10,000. Now what?
Unlike in most of the rest of the world, where the newly hyper-wealthy are largely Internet entrepreneurs, Chinese billionaires come from many sectors.