Could China's collapse have to do with new regulations??

[BayCityProgressive]

So China's stock market dropped 9%. Recently the country set as a goal unionization of 70% of foreign business, wages have doubled where the unions have gotten in, the country is implementing a basic universal health plan that will be 100% active by 2010, new taxes and regulations on business, andover 100,000 party members thrown out and some put in prison for corruption and "collaborating with capitalists". ALong with the fact that they really needed a correction anyhow, could this have something to do with it? Now that labor won't be as cheap there, maybe investors will look elsewhere?

[madrchsod]

1. yes it could be the result of new regulations

also the banking system is under pressure to meet international standards. china can not keep up the growth rate of over 9% each year without some correction..look for india and vietnam to pick up a lot of business from international sources

[BayCityProgressive]

2. Vietnam is following the same course

as China, state owned banks and new labor laws and regulations. they have also had record growth. Both countries have goals of eliminating extreme poverty by 2020 so I think they are playing games with their currency to achieve favorable business environments.