By John Lindauer:There is reason to believe investments in China will eventually be worthless for firms such as PetroChina (PTR) and China Life (LFC) and that the supply chains of companies sourcing in China such as Apple (AAPL) and Walmart (WMT) will eventually be broken. The question now is how soon? (There is an entire December 26 Seeking Alpha article "Why Investments in China Will Eventually Be Worthless" explaining why this will occur.)
Presently there is an implicit social contract between the Chinese people and their ostensibly communist government: the people don't challenge the government and, in exchange, get a degree of economic freedom and access to better paying jobs. In essence, the political leadership provides stability and mostly low-wage job opportunities and, in exchange, gets to remain in
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