Monday, March 08, 2004

economy - Car-craze should worry WHO

You might think that SARS or the chicken flu are contagious diseases. After one week in Shanghai, I'm sure that the current car craze is equally dangerous. Half of my friends is thinking of buying a car and much of the other half is thinking of ways to make money by selling cars or supplies.
It is too early to really assess the situation; I might get it too! I thought that most of the automotive companies were already investing in China, more are still coming.
I still do think that the automotive industry is heading for a massive overcapacity, but saying 'no' is as hard as stopping an overheating economy. There is no way back.

Update: Even Wang Jianshuo is in de process of buying a car in Shanghai and shares his observations.

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