What next for China?

I have just returned from Hong Kong and Beijing following my annual research trip. I came away encouraged that the excess industrial capacity and real estate worries are not nearly as bad as many have been suggesting in the West. On the other hand, I do not expect any bold policy actions from China in reaction to further problems from Europe if they develop. One key conclusion reached was we will continue to avoid many exporters based in China that require better overseas growth or domestic stimulus. Instead, we will maintain our focus on world class multi-national companies, in China an...