"In the past it was tulips, then we had dot-coms, now it's China. Everyone wants a piece of it."
These are the rather concerning words of Gordon Chang, author of The Coming Collapse of China. Yes, the man is literally talking his book. That doesn't make him wrong. Hear him out as we all try to piece together the riddle that is China's grand foray into capitalism.
Before everyone breaks into their familiar "China is a fraud" vs. "China is the future" camps, let's reconcile the two ideas by injecting the very traditionally Chinese notion of time into the equation. Chang did so early in our interview. "You can have growth in China over a very long term, but that doesn't mean you're going to do well in the next one to two years," he says. Jim Rogers was talking about the long term and trading it via ag plays and precious metals. Gordon Chang is talking about what he says is a massive bubble in Chinese companies. We can all get along.
Chang says many of the assumptions about Chinese growthRead More »from China Is the New Dot-Com Bubble: Gordon Chang