Matthews Asia: Which China Are You Looking At?

Which China Are You Looking At? by Andy Rothman, Matthews Asia

When you look at China, are you looking at its past or its future?

Many investors are pessimistic about China’s economy, largely because they don’t realize how much China’s economy has changed.

China's old economy looks weak. Exports are down by about 3% through November, compared to an increase of 6% a year ago. Industrial production is up 6%, compared to 8% a year ago. Fixed asset investment has increased 10%, down from a 16% growth rate during the same period last year.

But are those the parts of the economy you want to focus on, or invest in?

Not an Export-led Economy

Exports, for example, haven’t contributed to GDP growth for...