In Chinese, the word "crisis" is made up of a combination of two characters. The first signifies "risk". the second stands for "opportunity".
China could face many crises ahead. As an investor, the ones I need to examine most closely are those where potential risks - the fears they provoke, the solutions they require - have the best chance of creating value.
"If you do your homework, buy cheap, and remain patient, you should be able to walk over and pick up that pile of cash in the corner that nobody else notices."
By today's accepted standards, China is a relatively safe place to invest.
The PRS (Political Risk Services) Group, a leading organization in investment risk analysis, has ranked China as a "low risk" country since 2001.
In 2006, using factors such as total foreign debt as a percentage of GDP, debt as percentage of export goods and services, and international liquidity and exchange rate stability, China scored 47.5 on a scale of 50. Japan scored 46, and the United States a lowly 30.5. In fact, the United States has been considered more risky than China since 2001 - and that was before the September 2001 attacks.
-Jim Rogers, A Bull in China (2007), Chapter 2: Risk: The Perils of Success
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