Read this post for a brief overview of some of the challenges faced by America’s biggest economic rival, and the world’s second largest economy.
China wants to be the biggest and best
China has ambitious goals and the country’s recent success has increased the chances that it will achieve them. One of the goals is to be the world’s largest economy by 2035. But numerous challenges face them. Some of the challenges include the current make-up of the economic success. They have to transition from producing goods for the world to producing goods and services for their own consumers. Additionally, they have created the largest migration in the history of the world, from the hinterlands to the cities. Now they must keep them all employed, provide their people an ever-increasing quality of life, or hopes of improvement. And more!
Learn more about the challenges faced by China in this section of the lunch and learn.
China’s regulations also hurt their chances
To many outsiders, China is an autocracy ruled by an increasingly irrational actor, Xi Jinping. However, as Louis Lau explains in this section of the movie, insiders see things differently. President Xi is doing what he said he would do. He is promoting communism and stability with the crackdowns on private education and financial companies, for example. Investors would do well to learn Mr. Lau’s lessons about where regulatory risks are currently, and may be in the future, based on what President Xi said he would do and what he has done already.
Learn more about Chinese regulatory crackdowns in this section of the lunch and learn
China’s version of ESG
China also believes in environmental, social and governance initiatives. But their beliefs are not the same as Western beliefs! Thus, they are going their own way. Listen to Louis Lau explain how “governance” means “what the government wants” in China, and more here.
Contact your wealth manager
To learn more about China, what we are doing, and how you may benefit from the experience and expertise of our various money managers, contact your wealth manager.