But let us not forget one primary problem with China--uncertainty. Uncertainty is the kryptonite of global financial progression. Foreign direct investment to China has spiked over the past few years, and will continue to do so, up to a point. That point will be reached when the returns being garnered in China have 'matured'. By this I mean that the 'first mover advantage' has been exhausted, and the return required by the aggregate investor base that is commensurate with the level of uncertainty, or risk, that is inherent with investment in China, is no longer available.
Make no mistake: China remains one of the most opaque investment opportunities on the global investment menu. This nebulousness begets outsized risk premiums, and in so far as the premiums are no longer available, due primarily to oversubscription to the China-play, China will suffer.
