Fire or hot air? As the voracious dragon gobbles up the world's resources and companies like Maytag and Unocal target foreign firms, mainland China seems invincible – rich, powerful and unlimited in possibilities. But is it really? asked the Wall Street Journal. Some observers within the Middle Kingdom say China does not seem all-powerful. Increasingly, economists in China say such high-profile foreign acquisitions are necessary – not so much to breathe fire and flex its muscle – as to fend off a looming problem: declining profits. Lack of profits and economic overheating are impelling China to seek ventures abroad.
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