There’s plenty of money to be made off Chinese consumers. Not just for businesses, but for you, the investor, as well.
Automation, robotics, and 3D printing will obliterate China’s low-cost, state-subsidised manufacturing industry.
If the Aussie government’s paranoia is about hacking and cyber attacks, then we should cut all ties with the US. And we should get pretty cosy with China.
China is churning out oceans full of unprofitable steel because it’s the only way it can keep economic growth from stalling. To state the obvious, this is an unsustainable growth model.
When an economy the size of China grows, creates opportunities or makes mistakes, they will be felt by those smaller economies close to it, like Australia.
In comparison to Western economies, which are loaded with unsustainable public debt, China’s debt problem is on the private side.
OK Given that a large part of China’s wealth is trapped in unproductive investments, it doesn’t inspire confidence about China’s ‘rising middle class’ and ‘rising consumer society’.
Right now, China officially does not have enough gold to have a ‘seat at the table’ with other world leaders. Think of global politics as a game of Texas Hold’em. What do you want in a poker game? You want a big pile of chips.
Trustee for AMP Capital China Growth Fund (ASX:AGF) was trading higher today as the Shanghai Composite lifted along with other Asian markets.
Contrary to what you might think, we didn’t once touch on China’s credit quality and growing debt issues. You see, Chinese tend to look at very different indicators than IMF economists.