International Credit

Five Key Economic Risks Associated With China

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In July 2010, Huawei Technologies Co., China's top maker of telecom-network equipment, was sued by Motorola for stealing its technology.

Although a key market, China's economy differs from the economies of most developed countries in five key respects, according to the country's own publicly-traded companies. "Everybody wants a piece of China."

Ancient Chinese philosopher Laozi, the founder of Taoism, said in the sixth century B.C., "Rule a big country as you would fry a small fish [with little stirring]...the more prohibitions there are, the poorer the people become."  The China of today, however, has pursued a radically different course - one of a powerful centralized authority that exerts tight-fisted control over virtually every area of the country. 

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