Billionaire investor James Chanos, who spotted problems with Tyco, Enron and other one-time Wall Street high-flyers, is at it again. Only this time, he has not a company but a country in his sights: China.
In a November interview, the hedge-fund manager said, “The Chinese are in danger of producing huge quantities of goods and products that they will be unable to sell.”
This runs counter to the prevailing wisdom that China has plenty of upside left to its growth. Nevertheless, it echoes observations by some in our industry who have pointed out that China is building electronics manufacturing capacity for the sake of capacity, and that at some point, a crash is inevitable.