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China Tech Can't Spend Its Way Out of This Mess
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China Tech Can't Spend Its Way Out of This Mess
Recent earnings reports from Baidu Inc., Alibaba Group Holding Co. and Tencent Holdings Ltd. show what happens when management remains desperate to keep the top line climbing. China’s biggest tech companies are not only battling a sustained economic slowdown, they’re getting to the natural end of a decades-long expansion – fueled by the theory that if revenue grows, profit will automatically follow. Baidu is the biggest victim of this folly.
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