Jim Rogers: China Will Become the World’s Next Superpower
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Billionaire investor Jim Rogers thinks China will be the world’s next superpower.
The man who co-founded the Quantum Fund with George Soros has left the US with his family and moved to Singapore. Meanwhile, the LA Times reports a growing wave of Chinese businesses are expanding into the US.
From Spartanburg to Los Angeles they are building factories, buying companies and investing in business and real estate.
Individually, these deals pale next to high-profile investments such as the $5-billion stake China’s sovereign wealth fund took in Morgan Stanley last year, or state-owned oil giant CNOOC Ltd.’s $18.5-billion bid to acquire El Segundo-based Unocal Corp. in 2005.
But unlike the suspicion or uproar those moves generated — CNOOC withdrew its offer amid U.S. political pressure, and the Bush administration and other governments have pushed for a “code of conduct” for sovereign wealth funds — private Chinese businesses such as Shanxi Yuncheng are being wooed by states hungry for investment and jobs.
“Jim Rogers thinks China will become the world’s next superpower,” says Tom Dyson, the contributing editor of DailyWealth.
“Rogers thinks the Chinese are the most capitalist people on earth. They save almost 35% of their income and don’t worry about how many vacation days they might get. Instead, they worry about how many days they are allowed to work.
“Jim Rogers is rarely wrong about these trends. We need to get our money into China soon. I’m going to wait for the Shanghai Composite to form an uptrend before I invest… It’ll improve my odds of making a profit. In the meantime, I’m going to keep researching Chimerica stocks.”
Tom has unearthed a great way to invest in China. Read on to learn how to profit from what Tom calls ‘Chimerica’ stocks.
Comment by Shariahsender on 8 May 2008:
This story is older than China itself.
What needs to happen is that money and the finance professionals who control its flow, need to de-couple their money from the ideology of states.
There is no more United States anymore. The quicker we learn to stop being the United States and start being The World, the more money we will make.
The only ting I would say about Jim’s comments are that it’s not just because the Chinese are better savers or better capitalists. For a long time, they didn’t have adequate investment vehicles in which to invest. They hoarded because they had to, and they still carry those habits. And the government only recently has allowed a more efficient and easier flow of money OUT of China. Until recently, Chinese couldn’t even invest in the Hong Kong stock market, even though Hong Kong was “returned” to China in 1997.
Comment by sheol on 8 May 2008:
Unless China ends up like Japan. Which is highly likely, considering China will lose control of inflation and unfortunately will emulate other world central banks and become lazy with interest rates.
I am more inclined to believe what Stephen Roach mentioned recently, by saying China needs to bring up a 1.00% increase on their interest rates. With a sharp global slow down right around the corner, China could be dragged into a rapid global slowdown - with inflation eating up anything left.
Remember Japans investment into West/ America in the late 80’s early 90’s?
I am watching oil, it’s high peak is the demand from China and Chinese stockpiling. Oil drops dramatically = China is slowing.