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China is economically making progress in the international market following in Japans footsteps. Even Korea has started to turn the corner as well. BTW I flew Korean airlines not long ago going to the Philippines where I have a house in southern Mindanao (Davao). I'm Caucasian/Jewish and my beautiful wife is of Filipino-Chinese ancestry. I was in martial arts for years, although with the tire around my waist you would never know it. I found a respect for Filipino and Chinese cultures. I love eating the Filipino food and Chinese buffets. My wife is a good cook. I love all the fruits with exception of durian, which I guess takes an acquired native Filipino taste. Neither my wife or I care much for the Japanese sushi. I'm leery of China and Japan when it comes to politics and their governments. But as a U.S. citizen I think it we benefit to trade with China. Japan, of course, has had it electronic technology embedded in American society for decades. I have found that immigrants from any Asian country are productive for the U.S.. By far the majority are very hard workers.
Bobby
Thank you Bobby, very nice! Beautiful story and beautiful life, deep insight!
I like America a lot too.
I've recently answered these questions on other strings in this site. But I'll re-post them here.
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How do I see the Chinese people? With my eyes.
I'm from the USA, and am the son and grandson of immigrants.
From my perspective, and being in the financial world (I'm a banker/financial analyst) I think that if you have a good product to sell, people are willing to buy it. If your money is good, they are willing to sell product to you. All of this is regardless of race or ethnicity. They may not always be able to understand your culture, but as long as they and you are mutually benefitting each other, who cares? You'e both getting rich. In many ways, the only color that matters is "green" (as in US currency). If your money is good, real businessmen don't care about your race, your politics, your religion, or your accent. If they care about those things, then they aren't real businessmen, and you should drop them like a hot potato as business partners.
On a more personal level, I have rarely seen as hard-working a group of people as the Chinese. They have what was once known as the "Protestant Work Ethic". Chinese people living in the USA tend to be among the hardest-working people, and the most interested in advanced education of all groups I have dealt with. They are, in my opinion, the model of what immigrants to the USA should be. They work hard. They get advanced educations. They become doctors, lawyers, scientists, computer professionals, financial leaders, and productive members of society as quickly as any group of immigrants to the USA ever have. And I include my own Jewish people. In my opinion, the Jewish immigrants and the Chinese immigrants made good on the American Dream quicker than any other people in American history. And I have nothing but the utmost respect for the Chinese-American community for being able to accomplish that. I consider that to be a function of family values, and clearly the Chinese people hold to those old-fashioned values.
So... how do I see Chinese people? With open eyes, looking at history. And I like what I see.
As for economic issues in China, here's my take.
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Barring government sanctions on China, I don't have a problem purchasing products from China. The industry that I lend to is heavily tied to Chinese labor for manufacture. The labor is cheap, the quality tends to be good (better than most European quality), and the manufacturers are reliable for getting finished product out within the established schedule. I have no problems with purchasing Chinese products.
However, I do not believe that I would invest in Chinese companies, for purely business reasons.
The Chinese government has guaranteed literally billions of dollars in bank loans to companies that are showing either minimal profits or losses. Many, if not most of these companies cannot pay the required monthly payments without government assistance on those loans, and the banks are going to eventually want to be paid back. If the companies cannot make the payments, then the government must pay the banks as per their guarantees.
As a result, the Chinese are in the early stages of an S&L-like crisis the type of which we experienced here in the 1980s. If a few companies fail and go bankrupt, the banks will start panicking and will start calling all the loans. The government will have to cover their guarantees, which will likely bankrupt the government of China, and the Chinese government will end up failing on the guarantees, just because there are SO MANY LOANS that they have guaranteed, and they can't possibly cover all of it at once. The banks will fail and go bankrupt because they will have no other recourse for repayment, and will be unable to cover their deposits. The companies will fail because they will declare bankruptcy because they are unable to pay back the banks. And because deposits can't be covered by the banks, there will be a run on the banks, and the public will suffer huge losses as well.
The result will be a recession/depression similar to the one we saw in the 1980s from our S&L crisis, and will be the result of similar causes... loans made based on poor lending requirements and too much reliance on the government to bail them out. The diffrerence is that where the US government was rich enough to be able to eventually mostly cover the banks' real-estate losses and borrow what they needed for the rest, the Chinese economy is not yet strong enough to bail itself out. So it will actually be worse than our S&L crisis was, and will likely last longer.
In my professional opinion (which I admitt is contrary to that of many experts who are bullish on China) investment in China is too big of a risk. The potential rewards are, admittedly, huge. But the risk is too high, in my opinion. The investors who are bullish on China are banking on the fact that they will be able to recognize the signs of an economic failure before it happens. But I don't think they are correct. I think that the vast majority of investors in China are going to miss the early warning signs (or will note them, but think they still have more time and can grab a little more profit before they pull out) and that the failure will happen too quickly for them to react in time to save themselves. I'm very bearish on China right now.
Now... Taiwan on the other hand is a great place to invest. So is Hong Kong. But not mainland China.
wow, thank you. I find americans are so wonderful to work with!
I visited China some years ago and was very impressed by the industrial progress.
Most Americans aren't really aware of just how powerful China is becoming.
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