Doing business with China is a double edged sword

Ateneo Professor on Entrepreneurship

We have heard many glorious stories about doing business with China;

l.  There is a great variety of products that can be made as per your design or order.

2.  They are cheap or they can be made as per your specification:   cheap, mid priced or premium

3. It is also a large domestic market.  We have heard of stories about Western car manufacturers selling a huge number of their vehicles to China, although they were required to set up plants in China. I knew of sound equipment manufacturer who said that their PHL market is only 200;  their China market  - 500,000

The China downside:

l.  Intellectual property theft;  China courts and or confucian ethics is ambivalent towerds IP rights. Are you aware of the third shift production in China?

2.  In case of economic meltdown, China could take the rest of the world with it:

       l. To save itself, it will have to liquify its foreign holdings causing collapse of financial and stock markets worldwide

      2.  Or have fire sale of the commodities and finished products it has to liquify its assets, and in the process start a world wide deflation.  Either way it is bad for the world economy.
 So how do we deal with China and/or protect ourselves from the China juggernaut (or armageddon?)