Why I love China.

"Your in love with China!"

My Uncle John in KC told me this a few months ago. For the record, I am not totally in love with China, but I do have serious feelings for her:> Why?

1. Economy- It is estimated that China will over take the United States as the world's largest economy by 2027. 

2. Consumerism- For years the Chinese relied on exports as their main economic engine. Due to the "world recession" they were forced to diversify their economy. The shift in the Chinese economy will preach more "consumerism" (spend,spend, spend). 

3. Middle class-China is in the midst of creating an "infrastructure" that will match the United States. They are building highways, bridges, trains, etc. When the recession started the government in China was very fast to respond. China for the most part is still an under-developed country. A majority of the population lives at or near poverty levels. The government is focusing hard on "equal-distribution" of wealth. By doing so, the Chinese can expect to see a huge gain in their "paltry" middle class. Having a solid "middle-class" is the key for sustained economic growth.  China is well on it's way to creating a "new" middle class..(By the year 2020 estimates are saying that 100 million people will be entering the middle-class status in China). 

4. Follow the leader- Walmart, McDonald's, Ford, Google, Wynn. All of  Corporate America is putting an extreme amount of emphasis on the emerging Chinese market. McDonald's is planning on opening 15,000 stores in China over the next 10 years. I just got finished reading an article about the gaming revenues in Macau (Chinese province where a number of Vegas casino's have a presence). Gaming revenue in Las Vegas  has stagnated the last few years. Gaming revenue in Macau is up 60% from last year. Total gaming revenue in Macau has surpassed revenue in Las Vegas!

5. Power in numbers- There are over 1.2 billion citizens of the People's Republic of China. The Chinese population is 3x greater than the that of the United States. Think of it this way "A country of over 1 billion people are preparing to shift their economy into a "consumerism" model. They are going to need something to spend their money on!"

I have a number of Asian friends in Las Vegas. The topic of China and how to get in-front of this consumer "avalanche" is discussed quite frequently. 

Confucius "It does not matter how slowly you go so long as you do not stop"

Rob Astle