How to Get Your Business into China. Legally at China Law Blog
Nice survey.
Many things that you know about China are wrong at free exchange
Dang facts.
Delicate China at Buttonwood
Estimate that 1/5 of all 2009 lending in China was used to buy shares on the markets.
Beijing's New Offer for Regional Headquarters at China Law Update
Beijing wants multinational regional HQs, too.
1 comments:
The last sentence paragraph in the economist article is incorrect. Chinese rapid growth has generated a huge number of jobs. It's just that while it was creating a huge number of jobs, it was also shedding massive numbers of jobs from the SOE's.
The reason that worker share of GDP has decreased is that the wages that workers were getting in the 1990's from the SOE's were economically unsustainable and made possible only by massive amounts of non-performing bank loans.
Also Chinese interest rates are not low. They are actually quite high. Borrowing rates are kept low for the banks, while lending rates are kept high, and this was partly to recapitalize the Chinese banks (and US banks are now doing something very similar).
The fact that interest rates are high is why most companies finance things out of retained earning rather than bank loans.
The fact that the government doesn't take dividends from SOE's does change the dynamics of the Chinese economy. But the government has good reasons for not taking dividends. The big reason is that the government wants to encourage companies to make a profit, and what's the point of making a profit if the government comes and takes all of it.
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