Your Questions About How To Invest In China

Daniel asks…

How does a country benefit from investing in another country?

For instance, if China builds a road in Poland (which costs the Chinese approximately 1 billion dollars), how would that help the Chinese in any way?

John answers:

Building is not for free, it is long term loan from china to Poland. It will pay back chine slowly over the years.
Plus it will be used to tight the relation-ship between those two countries, so that they can make future deals like buying natural resources.

David asks…

What happened to Matt Clement and his $10 Million Dollars a Year? pick one from selection?

A. He ate them

B. He shoved it

C. He got sued for it

D. He went to the bank with it

E. He invested in China

John answers:

B. He shoved it

Steven asks…

How does China finance so many megacities?

I know that China‘s economy is growing fast and that most of the stuff at Walmart is from China. But how does China afford all of the hundreds of new modern skyscrapers being built every year? The country is somehow managing to move hundreds of millions of people to cities. How? That has to be incredibly expensive. Where does it get the money? India can’t do anything like that. Even the United States probably couldn’t do that if it tried. Where does China get the money for this? They can’t be that rich from selling plastic toys and cheap funiture.

John answers:

They make far more than cheap toys. Each area of China is designated for a particular industry or sector–China has managed to obtain the most high-tech factories and goods of anywhere in the world. Shanghai, where there are thousands of skyscrapers, is the center for finance, government and industry in that area of China. Foreign companies were forced to build in specific areas in order to invest and build a customer base in the country. Much of the investment for the Chinese came from ethnic Chinese (rich ones) in Hong Kong and Singapore. They are now suffering through their first business cycle downturn and finding it’s not so easy to dictate supply and demand as they once thought.

Sharon asks…

Do you think that the International community should stop China from being in Tibet?

I think that what China is doing is totally against human rights and they are occupying a sovereign country illegally. Why is the International community not doing more to put a stop to China, anywhere from absolute economic sanctions to invasion of China. They are being allowed to destroy a nation and abuse it’s people, all because the world is too afraid to stand up and say something. Stop buying anything from China, at least the consumers will be able to put pressure on China and the terrible human rights violations that they are doing. In addition, do you think that all nations should boycott the Olympics in protest?

John answers:

Should or will is the question. Many countries of the west have heavily invested in manufacturing facilities in China, so they will look the other way on this one as long as China doesn’t start killing everyone there. It isn’t in their best interest to try to challenge China about it’s activities in Tibet. Realize any country that does challenge China is looking at the possibility of having their investments there nationalized, and their citizens expelled or worse.

Michael asks…

What are the best stocks to invest in right now?

Hello, we are having a project in my Economics class about stocks. He is giving us $100,000 virtual dollars. We have to invest up to 3 stocks. At the end of the 10 weeks whoever has the highest amount of money will raise 15% of their grade. Can you guys give me 5 good stocks that I should invest in? Thank you very much.

John answers:

Stay away from housing and banks. Diversify and invest in small caps and China

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