China Seems Unstoppable

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Between all the China discussions in my circles, several have predicted doom and despair for China. Sky high corporate debt, state sponsored zombies, high interference in the stock market and currency and low domestic consumption - everything was supposed to be stacked against it.

But there's something about China which reminds me of a quintessential magician - pulling rabbits out of a hat and being able to do so time and time again. So I've maintained, that while China does have its share of problems, what it also has ingenuity and the capacity to intervene at a massive scale. As a global suppliers, in many ways, they quite literally, have the world eating out of their hands.

In the past few months, China has eased its policy on influx from other south east asian countries, allowed(and even promoted) immigrants to purchase real-estate, besides also turning its focus heavily on achieving dominance in cutting-edge technologies.

Their electronics policy, which is a part of their bigger plan to reduce electronics import burden (Yes. China imports a lot of high-end components) aims to make it a technology giant. If their past focus is any indication, its safe to say that they will pull this off as well.

And now as an icing to the cake, there are several reports of Chinese domestic consumption picking up well. Sizable domestic consumption inspires companies to manufacture goods in the country, since it eases supply chain constraints and almost always involves lower compliance requirements.

So, in many ways, China still seems unstoppable. They will continue to pull rabbits out of the hat.

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