Even with the arrival of the much-hyped Beijing Olympics, the Chinese stock market remains on a serious downer.

Yesterday, China’s benchmark Shanghai Composite Index dropped 5.2 percent after economic data revealed wholesale price inflation jumped to its highest level in 12 years in July.

However, Taipan Daily editor Justice Litle says China’s long-term outlook remains strong – and some China plays look more favorable than they have in years. Here are Justice’s six reasons why the China bears are wrong…

Government subsidies come in more shapes than animal crackers. There are tax breaks, trade protection, trade promotion, labor subsidies, production, procurement and consumption subsidies. And then there are debt guarantees like airline industry loans, student loans, small business administration loans, or government-backed mortgages.

19 years after Tiananmen Square and the Fall of the Berlin Wall, don’t expect a boycott of the Beijing Olympics due to the events in Tibet.