Ghosts of '97 Continue Haunting Emerging Markets

• Following up on a 2006 promise to make "significant and growing investments in China," Google (GOOG Quote) is pairing up with China Mobile (CHL Quote), providing exclusive search content to the mobile provider.
• Milwaukee-based Brady (BRC Quote), which manufactures labels, signs and other security products, is investing in expansions in manufacturing plants in Thailand, Malaysia and India.
• A division of General Electric (GE Quote) bought 1.39 billion shares in Thailand's Bank of Ayudhya PCL. The conglomerate paid 22.3 billion baht, or $624.5 million, for the 25.4% stake in Thailand's sixth-largest bank.

Additionally, tech giant Cisco (CSCO Quote) has said it wants 20% of its senior managers working in Bangalore by 2010 at an ambitious architectural project dubbed the "Globalization Center." The company is also investing $50 million in a strategic partnership with China Communication Services and has so far invested $70 million in 30 different China-based start-ups.

"People are investing on the basis that growth in every country in Asia is self-sustaining, which is just not true," says Spencer. "China will slow down this year," he adds, citing a consensus view that there will be a 100-basis-point decline in growth. "In 2007, a lot of questions will be asked about growth dynamics in emerging markets."

Just 10 days into the new year, a lot of those questions are already being asked.