China: the wild East
There are a couple of pieces in the IHT about how wonderful an investment China is to banks and VC funds.
Having just read Mr China, I’m wondering how short their memories are. The investors in the book did due diligence on the factories and industries they poured almost half a billion US dollars into, as did the book’s protagonists. Despite the preparatory work they did, circumstances and China’s own way of doing business bled almost all of it away.
It is not a good idea to pour money into China like this. China may claim they are a country of laws, and in a sense, they are, but those laws are difficult to enforce. As are terms of contracts. And that last statement comes from experience, not books.
In china
Comments
Yeah, half a billion 1990 dollars. That would be about 1.3-1.5 billion in todays money. So maybe people are more wary of ye olde middle kingdom if they only have smaller amounts of 2005 vintage dollars. But probably not.
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