Big Trouble in Little China

China is booming. Every investment turns to gold. The country seems to have unlimited cheap labor at its disposal. GDP growth seems to be 10+% year after year. Chinese stocks trade at insane multiples and a record number of investors seem to get into the market every passing day. Beijing and Shanghai seem to be building more skyscrapers than New York. Lo and Behold,
China has started shaking the world with its prowess in manufacturing, On paper, everything looks great and it looks like China is all set to take over the world.

Not so soon my friend. China's problems are just beginning. It has certainly made the world take notice, no doubt. But just as people are starting to look at China, they are realizing the enormous problems that come in dealing with a country whose government is as mysterious as its culture. Not all is rosy. China has serious problems with its environmental resources, severe pollution, and institutionalized corruption within the government, the legal system, the police force, and the media.

The Chinese culture maybe 3000 years old, but the Country has opened up only in the last 30 years. China has gone on a mass industrialization rampage and the unfortunate side effect has been the startling revelations of the food scandals (among others) and how China cuts all corners with obvious disregard to quality and human life.

Shoddy products being manufactured in china has emerged as a global concern, with many countries increasingly worried by the dangers of importing products from China. As more and more embarrassing stories come out, the country is scrambling to (or at least claiming) show the world that it was serious about improving the safety of Chinese products and is a responsible player. So they did something interesting this week.

China executed its former top food and drug regulator on Tuesday for taking bribes.

It is a bit extreme, or is it??? China carries out more court-ordered executions than the rest of the world combined, according to human rights groups.

However, what has come as a bigger shock is, while the country is answering its buyers, news that their own high-speed maglev train, running between Wuhan and Guangzhou ...well, seems to have a few problems has sent the bells ringing. So relax, they are screwing themselves too.

And me worry?? Nah, we have just seen the tip of the iceberg. There is still a long way to go!!!