Issues: Potential Political Risk
Dr. Bill Belew
Issue IV - July 7, 2006
Introduction by Mr. Stolyarov:
Investment in China, India, and Japan may be lucrative, but it
carries some definite political risks, writes Dr. Bill Belew. For the
benefit of potential investors, Dr. Belew outlines what some of these
risks are and how they could affect commerce even indirectly related to
I attended a recent Investment in China and India Summit hosted by
Financial Research Associates.
I will use this forum to share some of insights that were given at this
summit for the benefit of those hoping/thinking/planning on investing in
an Asian country -- China, India, or Japan.
It is difficult to predict the effect of political events on the
investment environment. Potential areas of conflict in Asia include:
China and Taiwan - China wants its renegade island back in the fold.
India and Pakistan - historical conflicts.
North and South Korea (and allies) - North Korea is developing a
reputation for throwing things.
China and Japan - bad blood since WWII. Watch for it to boil in
However, these risks are minimized when put in the context of an
In addition, major events in any of these areas will affect trade and
exports across the world, whether or not one is invested in these
Dr. Bill Belew is a former Intelligence
Officer for a Destroyer Squadron. He lived 20 years in Japan, where he
started a language school for Japanese
Dr. Belew teaches classes for a vocational school and online for a
See Dr. Belew's blog,
for news and discussions about business and current events in Russia and
for Dr. Belew's reports on business in China,
on business in Japan, and
TheBizofKnowledge on business education.
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