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The treatment of stakeholders have been different inside and outside of China. The assumption based on the experience so far is that inevitably overseas investo

The treatment of stakeholders have been different inside and outside of China. The assumption based on the experience so far is that inevitably overseas investors, such as US based entities, will lose out more. Chinese firms have been raising money in overseas markets and has been exporting risk in this way, the issue is how China's government will handle this against the opaque corporate structure behind these financial instruments sold overseas.

ralph84 3y ago
> inevitably overseas investors, such as US based entities, will lose out more As they should. US-based entities speculating in China thinking the CCP had their back falls squarely into play stupid games, win stupid prizes.
- jldugger 3y ago
  Well, caveat emptor but you can't exactly dunk on capital inflows consequence free.
  - vkou 3y ago
    A truly developing nation can't, the economic powerhouse of the 21st century has a lot more latitude in this respect. As long as not every single investment in it goes tits up, there won't be any shortage of dumb FOMO money chasing growth. (Look at the mountains of money piled into straight-up obvious crypto scams, at least China is full of real companies that are doing real business[1], even if sometimes that business goes to shit.) [1] Like making all the things the world uses. And serving half a billion people living middle-class lifestyles.
    - starfallg 3y ago
      There's a lot of corporate scams in China that gets swept under the rug. That's not a validation of China's model of growth, it just postpones the pain, like Japan's lost decade. And Japan was a lot more developed when its real estate bubble popped. China has experienced the catch-up growth that it missed out on after 1949 in the past 3 decades or so. The trajectory of growth is less than for example, South Korea or Japan. The big difference being that China has more people.

ralph84 3y ago

> inevitably overseas investors, such as US based entities, will lose out more As they should. US-based entities speculating in China thinking the CCP had their back falls squarely into play stupid games, win stupid prizes.

jldugger 3y ago
Well, caveat emptor but you can't exactly dunk on capital inflows consequence free.
- vkou 3y ago
  A truly developing nation can't, the economic powerhouse of the 21st century has a lot more latitude in this respect. As long as not every single investment in it goes tits up, there won't be any shortage of dumb FOMO money chasing growth. (Look at the mountains of money piled into straight-up obvious crypto scams, at least China is full of real companies that are doing real business[1], even if sometimes that business goes to shit.) [1] Like making all the things the world uses. And serving half a billion people living middle-class lifestyles.
  - starfallg 3y ago
    There's a lot of corporate scams in China that gets swept under the rug. That's not a validation of China's model of growth, it just postpones the pain, like Japan's lost decade. And Japan was a lot more developed when its real estate bubble popped. China has experienced the catch-up growth that it missed out on after 1949 in the past 3 decades or so. The trajectory of growth is less than for example, South Korea or Japan. The big difference being that China has more people.