So far, there have been no bankrupt banks. Although a large amount of foreign investment has flowed into China, it has gone into enterprises or real estate. Some has flowed indirectly into the markets, but not into the stock market. Currency convertibility, exchange rate, and interest rates are all controlled by the government, so the currency is stable, and remains the most stable in all Asia. This is a key difference between China and other East Asian countries.
China also has a very strong central government.
Since 1995, the government has adopted a very special policy to emphasize the physical economy. Meeting with LaRouche In 1994, I had the opportunity to meet and speak with Mr. Lyndon LaRouche for six hours, and he taught me a lot. This is a very important concept. He also gave us a warning, about the global financial crisis. We talked about the bubble economy in both China and the Western countries, and he gave some very important suggestions for China, especially about infrastructure, and local development within China.