What's Ailing China: The Japan Syndrome
China is following the same path Japan did when it burst open, politically and economically, in the early 1990s ("Can China avert crisis?" Cover Story, Mar. 16). It is plagued with corruption among mandarins in high places. Its deregulation is slow and its banking system is poor. In addition, China is excessively pouring money into real estate with no regard to infrastructure.
China's mentality is the same as that of other Asian nations. Take a look at what's happening in Thailand, Indonesia, and Korea. All of these countries have followed in the footsteps of Japan.