Weekly Roundup: Escalades Overstock for China, Who to Trust, Repo Man, Goodby.. and Think Pot,

Wednesday, October 29, 2008 9:14
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With so much going on in China, and only a limited amount of bandwidth, I have created this weekly post to highlight articles that I feel are (1) important, (2) relevant, and (3) interesting.

This week there are 4 articles that I have chosen to highlight as each are quite interesting, they are all relevant, and there are issues within each that I think you the reader should be aware of.

If you have an article that you feel needs to be mentioned, please do so in the comments section.

GM shipping China-bound Buicks, Cadillacs

This article for me offers a lot of symbolism of how western firms approach China.  First, GM is only bringing these over as they are unable to sell them at home – an indication that their home market is retreating from them and that China is the market “ofthe future”.  It is also a symbol of how a firm can offshore its dirty laundry… and it is also a symbol of just how poorly GM has timed its recent China based campaign .. they bring in theEquinox, say they are green, and then backdoor a couple thousand SUVs.

The shame of food scandals

Of all the lessons to be learned at this moment, it is that consumer trust is easily burned.  Government leaders, businesses, and others have all spent their equity on hiding problems, blaming the boogie man, and stated that “it would never happen again”.  that “Changes would be made”.

As I have said before, steps should be taken to strengthen third party oversite, and the whole face before safety needs to be reevaluated.

In China, it’s pay up … or else

An interesting look at the repo industry in China.  With some experience in NPLs in China, I will admit to knowing a few groups who “offered” such services, and claimed to have the “guanxi” to pull some of this stuff off, but I never gained first hand knowledge.  What I think is true about the article though is that collecting on debt is much more complex in China, and that firms who rethink their A/R policies to reduce exposures either way.

Goodby.. and think Pot

A great article, and one that could just as easily be written by some China based professionals who have done well, and decided to check out of hte game with what remains of their hair, their liver, and their lungs.

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