© JUCCCE
Investors and citizens all over the world are flocking to China right now. It's not just a fad. They have the largest and fastest growing economy in the world and it's not going to stop any time soon. Many in the West have already decided to leave their possessions behind, or place them in Toronto self storage, and head East. It is there that a new economic powerhouse is realizing its future potential. With a massive population and vast resources, China will be a major player in many markets including, but not limited to energy.
The world of energy is a big topic because, after all, it's how we feed, warm, cool, and care for ourselves and each other. For many decades America has been the leading consumer of the world's energy but as China's large population places more demands on available energy, the world is likely to see many innovations in the coming years to offset such massive increases in world demand. This is both a positive and a negative.
China will only increase its appetite for energy that will, in turn, drive up global demand and prices over the coming decades. This is believed to open up new possibilities and put the country into a position to mold the future of energy security as well as alternative and renewable energy sources. This is the hope of the International Energy Agency (IEA). The world needs to see countries begin to diversity away from coal and gas and implement the use of renewable energies.
This has much of the world excited and investors are lining up to help China fulfill this leadership role. Currently, china's daily demand for oil is expected to triple by 2035 and reach an estimated consumption of 13 million barrels a day. At the same time, it's per capita carbon dioxide emissions are expected to grow 41 percent. In affect, China will account for almost sixty percent of the planet's increase in carbon dioxide emissions. With that said, China is also a leading investor in renewable energy sources. These figures are projected from current usage but if China implements new approaches to the way it consumes energy, this projection could prove far less negative.
It's the world's hope that China will find new ways to "go green." Fortunately for China, as the rest of the Western world struggles to manage a lagging economic infrastructure, the country is poised to become the leader in the future of energy. China will likely be the inheritor of a multitrillion-dollar global energy technology industry.
© Hallenser
Food is big business in China as rapid development has made eating out more popular. The restaurant sector has been attracting significant China venture capital in recent years, with Little Sheep leading the pack. This restaurant company got initial investment from UK-based VC firm 3i and US firm Prax Capital. It went public in Hong Kong in 2008 and is now one of the top=ranked Chinese restaurant chains.
Chamate and Xiabu Xiabu also attracted investments from Oak Investment and Actis in 2008. The latest rising star in the restaurant industry is Haidilao, which is famous for providing their customers with a complimentary manicure and massage while they wait for a table. This restaurant chain has won the honor of being a case study at Harvard Business School as well. The founder of Haidilao was able to transform a single hot pot restaurant into a successful national chain of more than 60 outlets based on a principle that employees should be treated with trust and respect.
© ˇBerd
Doing business in China can be difficult, but doesn't have to be. Not if you use a China Exchange Traded Fund (ETF). Whether it's a China foreign ETF or a Chinese currency ETF, you can gain experience to China's markets or hedge some of your foreign risk with China ETFs.
There are many challenges to overcome when dealing with business and finance in China. Trade barriers, tax laws, and unique traditions to name a few, but if your investment strategy wants to gain exposure to China's markets, look no further than a China market ETF.
An ETF like FXI, the iShares FTSE/Xinhua China 25 Index ETF is a great way to gain exposure to Chinese sectors like banking, construction, energy, and communications all in one investment.
If you prefer to limit your foreign investments to the Asian region, there are ETFs that include China assets in this category as well. AAXJ, the iShares MSCI All Country Asia ex Japan Index ETF is a prime example of a fund targeting investments directly tied to Asia.
