[lbo-talk] China's growth

Doug Henwood dhenwood at panix.com
Fri Jul 22 16:17:03 PDT 2005


Randy Steindorf wrote:


>Are there any statistics on the differential between the
>average rate of return on capital between Russia and China from
>direct foreign investment. Isn't the worldwide surplus of money
>capital searching for the highest returns (20% or more) with the
>least risk of loss?

I don't know of any general numbers. The US doesn't publish stats on US direct investment in China - it's "suppressed" to avoid disclosing corporate information. Russian investment is small, and yields a 10% return.

But it's not just about return. China is a long-term story and most MNCs want to be there. Russia doesn't have that appeal.

Doug



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