We are now witnessing the most turbulent yet opportunistic age since the Industrial Revolution.

The future global economic steam engine will have to be the USA, Europe, and the BRIC.

Understanding the real domestic challenges and how China market will grow is probably the best life-belt for foreign corporations and governments to get ashore in the next round of economic boom. It is thus important for all visionary entities to design a viable strategy for future development.

A FEW TIPS FROM CAGI:

THE SUBPRIME CRISIS IMPACT

With lax monetary policy and centralization of power among the riches in the past thirty years, the Western world was capable of creating series of economic bubbles, resulting in a loss of over 90% of greenback’s purchasing power. The Sub-prime Crisis happens to be the last straw on camel’s back. The era of greed and irresponsibility eventually ends, democracy and capitalism is now under scrutiny. The US impact towards world affairs is diminishing, but an economic world without USA presence will be in chaos. How to shield and get the most from this financial turmoil is any organization’s strategic nightmare of first priority.

One positive effect of the crisis is the release of elites and entrepreneurs into the free market, and these best-of-the-bests may contribute positively and constructively in the emerging markets, like China and India, for the next round of economic recovery.

THE GLOBALIZATION IMPACT

Although globalization has been gradually in effect since WWII, a real elimination of boundaries for worldwide economic, technological, and socio-cultural cooperation and development will probably come into effect in the next decade or so. The BRIC, South America, and African nations will also participate as key players. The demographic dividend, natural resources, exercise of soft power, and ability to group with previous rivals are key items for a better world and a prosperous one. Many of the concepts and principles will make way for new cooperation and synergy, holding onto past values and distinct friend/foe approach will be doomed to fail.

Change.

THE RESOURCES IMPACT

Resources have always been scarce, but not as much as tomorrow when there will be more middle class and emerging countries around the world. Commodity price will rise indefinitely. Military action may not be the only means in ensuring supply, alignment and cooperation on a global scale will probably be an alternative in the long run.

Forming alliance with China entities may not be a likeable resort for foreign powers but a practical one with win-win effect for our earth and human mankind. It is time for the back-to-basic approach on project investment and private equity financing, and China may be a good starting point through which the world economy can be lifted.

Bear in mind that China will still be the largest factory on earth, independent of the rise of many replacers and competitors.

OTHER IMPORTANT FACTORS

THE DELEVERAGE EFFECT
THE DECOUPLING EFFECT
THE CHINA INTERNAL HURDLES AND BOTTLENECKS
THE ECOLOGICAL AND ENVIRONMENTAL EFFECT

CAGI Strategists have been in China since the mid-Eighties and have witnessed with hands-on experience the many cycles of the Great Economic Reform. Armed with excellent analytic skills, vision, knowledge in the China commercial system and know-how in PRC wheels-and-deals, CAGI is the best one-stop advisory for your expansion in and penetration into the market.