Three Views of China

1. Quality control is not their forte
Last month the FDA detained 107 food imports and 1,000 shipments of dietary supplements from China because they were dangerous to people’s health.

Market control is becoming a forte
For example, China has 80% of the market for ascorbic acid, a preservative used in many foods. Only one company in America still makes it.

2. They like private equity
They are investing $3 billion in Blackstone Group as a first step in trying to improve the return on their $1.2 trillion in foreign-exchange reserves, most of which is now invested in U.S. government bonds.

3. They may be the first totalitarian country to be an economic power around the world.They’ve been able to grow their economy at a very impressive pace, satisfy a growing middle class and yet run the show absolutely.