Thursday, May 6, 2010

China ROARRRRRRRRRRRRRRRRRRRRRRR

China is really coming out strong in this century.


Let me summarise what it has done thus far.


Remember 6 years ago? Where Lenovo bought over IBM's personal computer business? Then now you have Geely's latest acquisition of Volvo from Ford Motor for a whopping $1.8 billion.


It has emerged as the biggest automobile market today and it is officially the biggest exporter in the entire world right now. Even till today, it is still relentless in its trade, trying ever-so-hard to maintain its low currency in an effort to support its exports. However, due to the tremendous pressure piled upon them by the United States and heavy scrutinization from the world, China has no choice but to capitulate this time.


However, they are not going to let it float by itself, rather they will probably adopt a controlled float market approach.


Also, it is an upcoming player in the Merger and Acquisition market as well. Look at the number of mergers and acquisitions it has made thus far.



Other than that, China is also investing heavily on natural resources like oil in Africa, copper in Peru and many more. Most of their deals are apparently done in developing countries. Well that's pretty logical isn't it ? I mean the production costs in these countries are bound to be low and these are the places where the resources are present in abundance!


In terms of financial strength, they are unstoppable. They are already on the verge of overtaking Japan as the 2nd largest economy and soon  United States will be replaced by China as well.


And if you think they are awesome, wait till you wait another 10 years more. Afterall, China has only reopened the economy to the world for a mere 30 years.


Just look at the country's global clout right now! It's overwhelming and many are in awe of it. They are the Lady Gaga of the economy. Famous and unbeatable.


Things just keep going their way, their accrual growth is phenomenol and this is most likely going to be sustainable for quite some time.


The good news is, we are going to expect a lot more drama from China in the upcoming years. So stay tune and enjoy all the fun while you still can!

No comments:

Post a Comment