The Economist recently interviewed Fu Ying, China’s Ambassador to Britain. A number of interesting topics related to China’s export driven economy were discussed along with the government’s effort to provide fiscal stimulus to spur consumer demand. As I wrote last week in an article about Caijing magazine, American investors are well served to follow developments in China simply based on the size of the economy. View this article to see the video.
Like many American investors, I have been trying to expand my circle of competence to the point where I can evaluate and potentially participate in opportunities in China. The growth patterns in China have been widely reported and there may be elements of hype associated with some Chinese investment strategies. However, the importance of the Chinese economy over the next century simply cannot be ignored. Read this article for more information.
The Economist interviewed Stephen Roach, Chairman of Morgan Stanley Asia. In the interview, Mr. Roach comments on the need for China to increase domestic consumption which is a step that many have recommended in recent years. In order to accomplish this goal, Mr. Roach believes that the Chinese people need to have more confidence in their overall level of security when it comes to unemployment, pensions, and health care. The interview also covers lessons learned from Japan’s long downturn and prospects for India’s economy over the next several years.
Read this article for more details and the video.