I keep reading about how China goes through these booms and busts all through history. How they cant hold it together. Francis Fukuyama talked about it in his book Trust. He said that in countries like the US, Japan, you can have large organizations due to trust. When I lived in Johor Bahru, Malaysia, there was a Panasonic plant making TVs. The Japanese plant, the organization, was on one side of the road. Many Malaysian Malays and Indians worked there. Across the road was some industrial parks with many small garages. Thats where the Chinese worked, largely in 1-3 man operations, making the cable assemblies, buttons, casings and other components.
Has trust changed? NY Times today:
In Hong Kong, Frustration 15 Years After Return to Chinese Rule
Public mistrust of the central government in Beijing is at its highest since the handover in 1997, while approval ratings for Leung Chun-ying, the incoming Hong Kong chief executive, have dropped sharply before his inauguration.
Pressing economic worries have contributed to public frustration that has been building for months, both with Beijing and with the political and economic system in Hong Kong since 1997, a system in which special interests controlled by a small circle of wealthy tycoons select the chief executive. http://www.nytimes.com/2012/06/30/world/asia/in-hong-kong-frustration-after-return-to-chinese-rule.html?pagewanted=all