Investing in China

This article describes a geographic region that covers various exchanges, currencies, indices and stocks. View articles referencing this region.

 

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Parker Conrad

China's impact on international business: almost everything China does has some effect on the world economy, but Chinese outsourcing, mergers and acquisitions, and the valuation of the yuan/RMB stand out as particularly direct by tying immediately into the global supply of labor and economic power balance.

• Outsourcing to China: not all industries/companies are suited for outsourcing. This article explains who can gain from offshoring, who can't, and what the impediments in the outsourcing effort.
• China Enters the World M&A Stage: China is rapidly becoming a big player in international mergers and acquisitions, but there's more than simple economics at play here--political subtexts also often play a role, as in China's recent Unocal bid.
• Revaluing the Yuan: Is the Chinese yuan/RMB overvalued? A reevaluation that lowers the strength of the yuan could be a plus for US manufacturers who import raw materials from China, but could lower profits for US exporters.
  • Bank Of China
• Concept:U.S.- China Trade Dispute

The Chinese domestic market: Tremendous economic growth means that China is no longer just an exporter--it is rapidly becoming one of the world's most important consumer bases. Each of these articles explains a part of the issue in greater detail and lists winners and losers.

• Rise of China's Middle Class: Increasing capitalism has brought an influx of wealth to China's new middle class, and thus a dramatic shift in China's demand profile.
• Luxury Consumption in China is growing because of China's younger urbanite crowd, much to the delight of foreign companies; obstacles along the way include counterfeit goods and luxury taxes.
  • Concept:China's Piracy & Counterfeiting Problems remain problematic for luxury brands.
• Mobile Phone Usage in China is widespread and still growing. This article explores the mobile market, the identity of the key service providers and handset manufacturers, and the reception of new mobile technologies.
  • Mobile Phone Adoption in Developing Countries
  • China Mobile (Hong Kong) (CHL)
• China's Aging Population will probably impact the Chinese economy in a variety of ways, from increased industry opportunities for drug manufacturers to pension issues to the question of diminishing labor forces.

The inward investment from abroad is the injection of money from an external source into a region, in order to purchase capital goods for a branch of a corporation to locate or develop its presence in the region.

Inward investment creates jobs in an area and brings wealth into the economy. Some places do however attract inward investment due to their relative remoteness, for example a company wanting to recruit personnel with relatively common skills might deliberately relocate to an area where wage rates are relatively low.

China and the internet: China already has the world's second-largest body of internet users, making it a force to consider for all internet-based companies.

• China's Internet Growth means big opportunities for service providers, e-commerce , and online services/advertising companies.
• China's Internet Crackdown isn't making it easy for blogs and other "self expression" internet activities to flourish, however--stringent policies affect players from big search engines to software and hardware companies.
• China's Piracy & Counterfeiting Problems have only been made worse with widespread internet adoption, especially digital media piracy.

'China and the environment: China's environmental issues are troubling both for domestic companies and the world at large. Some industries will benefit, however--especially those with companies that focus on environmental-damage reduction.

• U.S.-China Anti-Dumping Laws are a powerful weapon in the US trade protection arsenal, restricting Chinese ability to produce products like paper and protecting US manufacturers from Chinese exports.
• China's Coal Power Pollution and the accompanying regulations could actually be quite positive for a number of foreign equipment manufacturers who have expertise in cleaner energy solutions.
• China's Water Scarcity is troubling for many Chinese manufacturers, but may be a blessing for foreign companies as demand increases for foreign food crop imports, energy (ethanol), and drought-resistant crops.