Who's afraid of the Communist Party? Well … since this is an investing website, perhaps it's more appropriate to ask how afraid you are of putting your money in a country governed by the Communist Party.
In an article on Slate, columnist Daniel Gross suggests that the Chinese people are more interested in development and growth than in political ideology. He writes: "Of course, in China, Marxist morality shifts over time. And today, the most moral thing that Chinese policies and people can do is promote economic growth and development, regardless of the distributional outcomes."
How can investors tell whether Gross is right? Does buying stock in state-owned Chinese companies such as China Mobile (NYSE:CHL), Aluminum Corp. of China (NYSE:ACH), and PetroChina (NYSE:PTR) give you the willies? How about something more broad like the iShares Xinhua China 25 Index (NYSE:FXI) index fund?
Sound off in the comments box below about whether it matters if the mouse-catching cat is black or white.
