Are We Afraid of China Or Is China Afraid Of Us?

 Many people fear China’s capacity to economically take over the world.

But I see things differently. Instead, China represent a few billion future customers for our brands.

The west will profit from China.

Here’s the Assetbuilder article that supports my claim





Andrew Hallam

I’m a financial columnist for Canada’s national paper, The Globe and Mail, as well as for AssetBuilder, a financial service firm based in Texas. I’m also the author of Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School (2nd Ed. Wiley 2017) and The Global Expatriate’s Guide To Investing: From Millionaire Teacher to Millionaire Expat (Wiley 2015). My mission is to educate, motivate and inspire people on basic retirement planning and best practices for investing, using evidence-based strategies. I’m happy to comment on your questions. However, please read the Terms of Use, Privacy Policy and the Comments Policy.

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3 Responses

  1. Matt says:

    Andrew,

    I always like reading about stock market returns in developing countries. Do you ever question whether we can apply what we know about stock markets in developed countries to stock markets in places as corrupt as China and Indonesia? I dont know much about regulation or transparency or other factors that affect market returns around the world, but is it possible that stock market returns in such countries will have nothing to do with returns that we see in the West, over the long-term? Your article, ‘The Rise and Stall of China,’ comes to mind when looking at such poor returns.

    What advice would you give to someone looking at long-term investment, with a hesitant eye towards such markets? I only index, but I am not sure I want an emerging market index in my portfolio. I also struggle with the percent of equities that my total international index should be.

    I am always interested in discussing the possibility that some emerging markets may not behave like Western markets, regarding long-term growth.

    Matt

  2. Matt,

    We think alike. I don’t own exposure to the emerging markets myself. I own VTI(U.S. index); VEA(first world international index) and VSB.To (Short term Canadian bond index)

    That’s it.

    Cheers,

    Andrew

  3. Daniel says:

    I think that Chinese prefer western brands. . and pay a premium for them because Chinese companies are not regulated enough and have a bad reputation for the most part. However the Chinese government makes it a very tough playing field for foreign corporations inside China. Especially when dealing with communications and technology. . which is perceived as a threat to security. I’ve noticed that they will temporarily allow big brands, like Google and Youtube and Facebook. . then gradually cut off access while offering Chinese owned copies of the same online tools and brands. Twitter becomes Weibo. . Facebook becomes RenRen or a few very successful social networks. .. Youtube replaced by Youku etc. . .. I also read that this autumn festival holiday in China is a time of year when many Chinese millionaires and billionaires travel to western countries to buy real estate. Usually paid in full in cash.

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