There are myriad ways to view and understand China these days. And one that is quite common amongst everyone from diplomats to investors to businesspeople is seeing China as a high risk, high reward proposition. There is some validity to this, simply because, yes, the gains can be great, but the work is hard and success isn’t guaranteed. The really tricky part is identifying, prioritizing, and quantifying the actual risks one faces in China. Yes there are risks in the real estate market, the shadow banking sector, and with ethnic minorities, but here are three that recently came up in a conversation with a top Sinologist.
1. Urbanization
2. Air Defense Identification Zone
3. North Korea
via China’s 3 most critical risks – Term Sheet
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