Very real opportunities exist for investment in China;
China continues to struggle fueling it’s economic growth; partly because it’s been paying for all of the infrastructure through borrowing, which as of right now is at about 250% of it’s GDP, adding to the fire is the forecasted economic growth not expected to hit 7.0% in 2015.
The amount of building that’s going on here is crazy… roads, high rise office towers, everything.
China recognizes the need to improve the lives of the citizenry rests in producing sustainable growth and participate globally.
In order to do that, China is going to have to shift from low end manufacturing to high end production.
Such a move requires that China reduce all of the heavy government spending and borrowing to fuel its growth, and move toward a consumer market with a focus on increasing the services sector. The services sector has risen 46% over the last 10 years, and will need to continue to grow and outpace the low end manufacturing.
We combine the rise in services with the strong dollar gives China a chance to increase exports to the US.
Now here are the clinchers, president Xi Jinping has eased up on visa restrictions to enter and stay in the country, I literally received a 10 year visa this year after having to renew my visa yearly for the last 10 years; the easing up on visa restrictions will allow more talent to enter the country more frquently from foreign companies.
Next while the Shanghai stock exchange has suffered some eratic performance recently, the fact that the Chinese equity markets have been opened to foreign investment is huge. In fact several mainstay Chinese companies are actively seeking foreign investment capital.