Managing The Dragon

In response to our recent post on China’s growth rate, one of our readers wrote and asked the following: This may be a dumb question, but why is China’s high growth rate a bad thing? Shouldn’t the country be happy that its economy is growing rapidly while everyone else’s is slowing? With countries around the [...]

One of our readers made a very thoughtful comment on our recent article regarding the internationalization of the yuan, which some now refer to as the “redback.” My reading of China’s monetary policy is that the country is more concerned about domestic inflation and the stability of the yuan than it is of the yuan’s appreciation [...]

When inflation hit 21.7 percent in 1994, Zhu Rongji, China’s then economic czar, literally shut down lending by assigning tough credit quotas to the regional banks. Zhu told bank officials that they would lose their jobs if they exceeded his credit quotas. As a result of Zhu’s tough administrative measures, inflation in China slowed to [...]

There is no more attractive market for a company that provides goods and services to the power sector than China’s electricity industry. It is big, fast-growing and open to new ways of powering the Chinese economy. Moreover, the Chinese companies that are building out China’s power generation and transmission industry are well positioned to do [...]

In October, China’s inflation rate jumped to 4.4 percent from 3.6 percent the month before, catching many China watchers by surprise. October’s rate was the highest inflation has been in China in two years, and well above the government’s target of 3 percent. Given China’s impact on the global economy, October’s surge in inflation provoked [...]

Apart from the headline making stories about China’s growth rate, its currency, and sky-high property prices, three major trends are developing that are changing the competitive landscape in the country. All three, in one way or another, deal with the vast local market which largely exists in China’s interior. In the broadest terms, approximately 400 [...]

As the dawn of the new century, a new technology promised to fundamentally change global economics. Government leaders in the United States and China, the two largest economies in the world, believed that companies from their respective countries should lead in the development of this new technology. By 2010, two national champions, one from each [...]

The interview with “American Entrepreneur” last Wednesday was one of the more enjoyable that I have done. Dave Iwinski, the radio talk show host who is known as the “International Capitalist” and who led the discussion, has run several companies over the years and has had direct experience establishing and managing manufacturing facilities in China. [...]

I’m scheduled to be interviewed by a Pittsburgh radio station at 3:00 pm, Eastern Daylight Time, Wednesday, September 1, on the subject of entrepreneurship. If you happen to see this post and are in a somewhat similar time zone, the producer sent the following ways to tune in: Listen live on 1360 AM (local only) [...]

Without a doubt, China is the largest construction site in the world. Buildings, railroads, highways, airports, power plants, you name it, and China is building more of them than any other country. It’s no wonder then that China is becoming the largest market in the world for construction equipment. As in autos and most other [...]