We get concerned about zombie companies in Europe skewing markets. The scale of this is dwarfed by China, with corruption, and government takeovers, lack of financial visibility, and nepotism rife. Most of the state owned enterprises are loss making and costs are increasing. This is really damaging the global playing field for example China now make over 50% the worlds steel at a loss, which is subsidised & unsustainable?
How should this impact our sourcing strategy