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... The business article by Jayanthi Iyengar entitled “Wrong turn seen in China’s economic roadmap” (Asian Times Online, April 1, 2003) discusses the economic risks that can possibly happen in China’s economy as it opens itself to the free market trade economy of various nations. Iyengar chronicles the steps and policies Chinese businessmen and government took in order to impose protectionism and economic growth at the same time.
In discussing China’s economic growth, Iyengar criticizes China’s initial move of allowing only foreign direct investments (FDIs) to participate in the country’s economy. The author expresses concern on the possible implications and result of the said policy, illustrating the stunted and negative economic growth that may happen if Asia will experience economic shocks like the once experienced during 1996. China’s possible economic downfall is reflected through the Indian economy during 1996, wherein its concentration of FDIs brought about vulnerability and susceptibility to be affected by recessions and shocks that often affect Asian economies. China’s recent ‘openness’ to foreign portfolio investments this November (2003) is considered a positive move toward a real and projection of economic growth. However, China is still vulnerable to economic shocks because of the “informed investors’ sentiment,” which is detrimental to the China’ ...

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