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Main image for 5 Things Companies Should Know About the Slowdown in China
Publications|Article

5 Things Companies Should Know About the Slowdown in China

JD Supra

8.31.2015

The dramatic drops in the Shanghai, Shenzhen and Hong Kong stock markets have produced very obvious repercussions in global markets. In China, the nature and extent of the market drops have not been clearly reported, and in much of the domestic, government-controlled Chinese media, there is almost no mention of any alarming or substantial market changes. Most foreign experts seem to agree that as a result of global information flow (the “Chinese Great Firewall” notwithstanding) and increased education and sophistication within China, such is likely to add to the degree of cynicism within China regarding the government, the media, domestic and global economic stability and information flow.

However, those outside of China should also recognize that such cynicism—especially among the middle and upper classes—is still strongly tempered by a fundamental patriotism among Chinese people in general, as well as pursuant to autocratic dominance by the CCP. This may seem contradictory, but it is reflected by the Chinese predilection for foreign luxury goods, foreign educational institutions and even foreign investments. But China at the same time firmly believes, and even when shaken with domestic turbulence it still wants to believe, that it is a dominant global economic superpower (and the truth of this seems beyond any credible dispute), and that this is the “Chinese Century.”

Click to read full article: 5 Things Companies Should Know About the Slowdown in China

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