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Weaknesses

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 The risk of a real estate bubble and slowdown due to overinvestment.

 Lack of original innovation and lack of protection for intellectual property.

 Absence of a free press and freedom of speech, and a growing rich-poor divide, that could all result in social unrest.

 An increasing dependency ratio due to the one-child policy – this could put a strain on the welfare system.

 Corruption that has spread to the top echelons of the Communist Party and a display of wealth that is infuriating the public.

 Domination of state-owned enterprise and a lack of transparency with accounting disclosures.

 Lack of protection of the environment that is reducing the quality of life of urban citizens.

The Emerging Markets Handbook

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