The China story for the past year has been one of a stumbling giant. Percentage growth has dramatically slowed and the government’s attempts to boost GDP while avoiding sector bubbles have been met with impatience and disbelief.
Meanwhile a fundamental transformation is happening, from a traditional emerging market centered on exports to a developed world economy driven by services and internal consumption.
Andy Rothman of Matthews Asia Funds has detailed some surprising statistics in his essay, “Which China are You Looking At?"
An estimate that only 10% of Chinese made goods are exported.
2015 estimated new home sales will exceed the US by 65%.
US exports to China after China joined the World Trade Org. in 2001 have risen 666%.
And most importantly, that the declining percentage growth is on a dramatically larger base.
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GPM does not have any holdings in Matthews Asia Funds.