Doing business in China as we know it is ‘over,’ expert says
Chinese President Xi Jingping faces opposition against property tax
China Beige Book CEO Leland Miller reacted to Chinese opposition to a proposed property tax plan on "Mornings with Maria" Wednesday. Miller argued the era of doing business in China as we know it is over, but some value remains for high-risk portfolios.
CHINA'S ECONOMY STUMBLES ON POWER CRUNCH, PROPERTY WOES
LELAND MILLER: I'm not ready to say that China is uninvestable, period, because I don't think it is. But I think it completely depends on your risk profile.
What a lot of multinational corporations have done, lots of financial firms have done for years and years and years, has said simply, 'China's big, lots of consumers, lots of opportunities. We got to go in there and we'll figure it out.' And I think the idea that you're just going to be able to go in there and divine what political risk is and risk what could be serious falls in company assets or stock prices, sales, et cetera. Now that's a very dangerous thing to do.
So for some firms that have a high enough risk profile right now, China may be a good opportunity from a value standpoint because they're willing to take the risk. But the idea of doing business in China, the way we've done it for the last 20 years, I think that era is over.
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