Buying Things from China Good Idea or Not?

Question

I have come accross a trading company from china and i am not sure if i should invest time nor money. Has any one done this before.

Answer 1

Nope, closest I did was buy Petro-China (PTR) at the right time and sold at the right time (when Buffet did).  One of the best/luckiest trades I've done.  

I don't know if you're talking about investing in an actual closely held, privately owned COMPANY or just purchasing shares on an exchange.  

China gives me pause for some of the following reasons:

  * You are *always* investing at the pleasure of the government, the concept of ownership is not nearly as well developed there as you'd want to believe

  * They are not a democracy

  * There is not a developed and fully independent judiciary

  * You cannot get anything done in business without proper "guanxi" - or connections

  * Shanghai issues are STILL vastly overvalued, though not nearly as much as they used to be

  * Accounting rules are not necessarily followed

  * They are due for a recession

  * They need to strengthen their currency to cool their stratospheric inflation rates

I could go on.  

If you're looking for a trade, and you think it's a good one, give it a shot.  But if you're looking for an illiquid investment in a closely held company, consider the points above and conduct your own research.  

Good luck!

Answer 2

I am in shenzhen which is a center in south of china.

I am good in english reading and writing. chinese is my native language.

maybe we can make more contact.

now i do a business in clothes bags,and shoes.

if you provide clohtes style, I also can manufacture according your style.

help each other.

and also I can be your representation in china. because i have good skills in negotiation and other professional experience.

in addition, we can communicate our different culture. different country have different culture and we have different custom.

there are some product picture in my google album

http://picasaweb.google.com/xuyishark

email: [e-mail]

the email address welcomes your email for 10 years.

Answer 3

There are several advantages and disadvantages with investing in a foreign company. First of all, if you invest in a foreign company you are actually investing not just to the company but to the country itself. The company will turnaround and use your invested money to make more 'goods' which will in turn require them to employ more people... and so on. You get the idea. Is the company's stocks traded in a market or you just literally found this company somewhere?