How profitable is China?"

From Business Standard: "How profitable is China?" was the title of a very interesting article written by Jonathan Anderson of UBS. It attempts to answer the above question using basic macro economic data, and simple intuitive logic.

There exists a great deal of anecdotal evidence that China is a very difficult place to make money, especially for foreign multinationals.

Most people have the feeling that many large Western multinationals have sunk billions in the country seeking to capitalise on the booming local economy and billion plus local population and came to grief. "