An interesting essay in the WSJ by Andrew Browne:
Browne observes:
“For international
investors, China’s two-speed economy—one dying, the other accelerating—is
utterly confusing, and it has produced wildly contrasting strategies. If China
keeps subsidizing wasteful investment to keep industrial cities alive, its
financial system will eventually blow up …
At the same time,
however, some of the world’s smartest investors are making the opposite wager:
They are piling in. Last year, China attracted up to $37 billion in venture
capital, much of it for technology hubs along the coast. That is more than the
U.S. typically draws in a year and multiples of what Europe usually pulls in.
Gary Rieschel …
ranks Chinese entrepreneurs as highly as any in Silicon Valley, and he says
that China will lead the world in technologies like electric vehicles. “It’s
hard to deal with the rate at which things change,” he says.”