Protectionist and inefficient: What is the truth about China?

Mirabaud's Daniel Tubbs looks at why managers are dubious about China.

The further away investors are from Beijing, the more sceptical they appear to be about the prospects for China. Asian investors recognise China has its flaws, but appreciate the market still offers attractive opportunities. By contrast, European and US investors are dubious. The arguments against investing in China are well documented. The economy is cooling after three decades of near double-digit growth. Making money in China is difficult due to intense competition. A shortage of skilled workers has resulted in escalating wages and the relocation of labour-intensive industries to lowe...