Greedy guy writing again.
Today (Jan 2011), China purchases more cars and mobile phones than the US and soon will buy more computers.
Nomura Securities estimated that by 2014, retail sales in China may surpass that of the US.
China has also announced that it will spend USD 1.5 trillion on high speed rail and nuclear power. Not all at once but normally within 5 years (the basic 5 year plans mah!)
Simple language folks :
China's infrastructure currently is a BIG MESS and yet there are still hitting low double digit growth rates (due to FDI).
There are insufficient rail lines for their own citizens to get back home for CNY that some ppl are resorting to wearing diapers as some have to stand 17 hours on a packed cattle class train. In addition, certain rural areas in China, overloads occurs when people more than 5 households switches on their air-cond/chandelier/ etc.
But what happens when China upgrades its infra and fully capitalises on 1.4 billion of its own internal market?
FDI + Huge Market internally = >10% growth (current growth at slightly over 10%)?
Using simple maths, China's market growing at 10% annually will just DOUBLE after 7 years!!!
Folks: Another thing? China will be buying raw materials and consumables in order to manufacture USD 1.5 trillion worth of infra - what will be the effects of this buying binge on commodities prices?
Buy some Chinese based unit trust + commodities funds!
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