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. "

Chinese Internet users likely to reach 134m by late 2005

From Financial Express: BEIJING, Feb 3 (AFP): The number of Internet users in China will hit 134 million by the end of 2005, consolidating its position as the second largest market in the world after the United States, a research firm said Thursday.
The figure would mark a growth rate of about 30 per cent compared with 103 million Chinese users at the end of last year, independent forecaster Analysys International said.
The number of 103 million users in late 2004 was higher than the 94 million figure released last month by state-controlled China Internet Network Information Center.
Analysys said the increase would push the development of online games, a fast growing industry in China.

China's top banker denies RMB undervalued

From Xinhua:

China is very much on the track toward an exchange rate reform in response to the demand of the world's richest nations for a more flexible exchange regime, China's central bank chief told Xinhua on Saturday. "

Zhou Xiaochuan, governor of the People's Bank of China, however, cautioned that the reform will be carried out in a measured way to guarantee stability of the renminbi, China's currency.

China sticks to its long-term goal of convertibility of the renminbi under capital account, he said in an exclusive interview with Xinhua.