Foreign Investment: China is decoupling
Today's Financial News - Posted April 25, 2008
“This place is one big construction site. You cannot turn around without finding scaffolding, piles of materials, construction equipment and the like [no matter where you look] here.” — Keith Fitz-Gerald
by Mike Caggeso
Baltimore – (TFN): When Asia expert Keith Fitz-Gerald first returned to this country a week ago, he was overwhelmed by a single impression.
“This place is one big construction site,” Fitz-Gerald said. “You cannot turn around without finding scaffolding, piles of materials, construction equipment and the like [no matter where you look] here.”
With the U.S. economy suffering its worst downturn in years, and China’s stocks down more than 40% in the past six months, the bustle of construction-related activity in this Asian giant seems incongruous – if not downright contradictory.
Foreign Investment: China’s economy decoupling
Surprisingly, it’s neither. This divergence between China’s ailing stock market and its still-spunky economy is an early manifestation of “economic decoupling” – an emerging trend being fueled by the globalization of worldwide markets. Read on to learn more.
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