Avoid China Like the Plague
Yes, I have read those innumerable Fool articles touting China as the next investment boom. A billion people living in houses with dirt floors about to enter the age of middle-class-dom. Surely there is mucho potential for wealth and riches.
Not so fast, Mao or Chiang.
Keep in mind that China is a Communist dictatorship. That is, the Politburo has complete, absolute, permanent control over everything that happens in China. They could, with a single vote during an afternoon, simply nationalize all businesses and seize control over everything, and they would totally be in their legal rights to do so. This is the same country that summarily executed an executive for contaminating pet food and baby formula with industrial spackle. Various S. Am. countries has seized capitalistic assets, are you so sure that China will not, at some convenient point down the line?Hmmm? By Communist Chinese credo, the Tianamin massacre was akin to downsizing their sales force.
Currently, China has the appearance of a budding capitalistic entity. Do you have enough confidence in the Chinese Communist Central Committee to bet your $$$?