The biggest problem for China now is perception.The
perception is made worse in China by the government's
opacity and the economy's difficult transition from
reliance on big infrastructure & exports to consumer
"Capital flight is driven by nervousness and lack of
confidence" says, Dev Kar,Chief Economist at Global
Financial Integrity and a former International Monetary
Fund official who tracks money flows.
Source: Wall Street Journal & Global Financial Integrity.
Is there a lesson for India to learn?.Don't create more
capacity building & mega infrastructure projects at a
speed more than what our economy can absorb.