Investing in China
Jim Rogers, one of the most influential investors in the world, thinks that Asia is the place to be and that investing in China is a wise move. He has not only transferred most of his money to Asia but also relocated his family to Singapore, where his kids are learning Mandarin. Mr. Rogers believes that the West has accumulated too much debt and that Asia now holds most of that debt, and therefore, he believes, China is where you should be.
Watch: Mr. Jim Rogers about Investing in China
“The money is moving into Asia. The largest creditor nations in the world are in Asia: Korea, Singapore, Hong Kong, China, Japan, Taiwan -- they are all creditors. You know where the debtors are and you know where the creditors are.” Mr. Rogers is certain that Asia will rise, despite problems and challenges: “There are going to be huge setbacks in Asia in the future. Look at America in the 19th century: We had a horrible civil war, we had many economic depressions, and we had no human rights. Despite all of those look at where we are now. Obviously there are many more obstacles that Asia in general and China in particular need to go through.”
The interviewer, Stephen Sackur from BBC’s Hardline, presents difficult questions to Mr. Rogers and asks him why Investing in China is a smart move? Why doesn’t Mr. Rogers consider putting at least some of his money in the United States or in England. “Why should I take my money and put it in these countries? THEY’RE BANKRUPT! Why would I put my money in countries that are going bankrupt? No question that there are problems in China -- there is a property bubble in China, especially in the coastal regions. But these regions do not represent the entire economy. I believe that the economy in China is strong enough to withstand crises that are evidently going to happen. In the long run, the future is in Asia and this is where my money is”.
Investing in China
Other issues, such as the environment, raise a concern with Mr. Rogers: “I don’t mind if China has wars, epidemics, civil wars, panics, depressions etc. The only thing you cannot recover from is a water shortage. That is a very serious problem that China is dealing with, especially in the North. If China does not solve the water problem, then the whole China story is gone.” Mr. Rogers believes that China will overcome the water shortage problem :”The Chinese are spending huge amounts of money to solve the water problem and I believe they will overcome this problem. They are spending staggering amounts of money, and I presume that they will overcome the problem. If they do not, then this is the end for the China story.”
Despite other difficulties such as an aging population that poses a serious risk to the economy in the near future, Mr. Rogers remains optimistic. He believes that China will overcome the population problem by loosening the one child policy and by attracting overseas Chinese to come back to China, and these beliefs makes him confident that Investing in China is the right decision for any investor.
“I don’t see any other country on the horizon that is going to be the most important country in the 21st century. It’s not going to be the U.S, the U.K or Denmark -- It is going to be China.”
To the blog of Mr. Rogers