FLU: Anyone hyping China and their supposed economic power is in for a big surprise. China knows full well that if they float the renminbi all hell will break loose.
You’re absolutely correct about the cost of labor, too. Factor in nearly critical shortages in experienced management, legal and financial professionals and it gets downright ugly.
The Chinese stimulus program is being used to paper over the systemic and structural problems they’re experiencing, as well as a tool to head off potential internal social “dislocation” (caused by increased unemployment).
I won’t do any business in China, due to the fact that our IP and proprietary information is at immediate risk, once we start dealing with Chinese companies. I know quite a few companies on the technical and engineering side that feel the same way. I will, however, do business in India and our experiences have been uniformly positive there.
