How China Should Prosper in the Years ahead

Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.
Chinese Flag in Shape of China

“Just as England led the world in the 19th century, and America in the 20th century, so China will dominate the world in the 21st century.” — Jim Rogers

Advertisement.

For the past two weeks, I have been touring the great Asian countries of Thailand, Singapore, Hong Kong, China, Taiwan and Japan as part of the FreedomFest Asian “Cruise to Profits.” At the Raffles Hotel in Singapore, Jim Rogers predicted that China would lead the world in the new century and surpass America as the world’s greatest superpower.

While in Hong Kong, I visited the Swinson English Bookstore, which was filled with books about the future of China. A few titles exposed the evils of Mao Tse-Tung and the post-Mao era of capitalism under the new communist rulers. I gradually have witnessed how this giant country has grown from an agrarian poverty-stricken society to the new economic tiger, with economic growth rates exceeding 8% a year since 1980. (I’ve been to China about a half-dozen times.)

In 1997, China took back Hong Kong from the British. Many analysts wondered what would happen to Hong Kong under Chinese communism. The answer is clear: Hong Kong took over China, not the other way around.

Advertisement.

Last year at the Milken conference, one speaker suggested that the State Capitalism model of China was superior to the Market Capitalism of the West. Niall Fergeson had a shocking response: During the past 30 years, China has boomed because it reduced government control of the economy from 80% to 20%, while the West has suffered because it has increased control of the economy from 20% to 40% or higher. Good answer!

Exclusive  ETF Talk: One ‘CHIQ’ Worth Investing In

During lunch at Victoria Peak, overlooking Hong Kong Island, Richard Wong, professor of economics at the University of Hong Kong, told me that he doubted that China would be the dominant power of the 21st century for one simple reason: An all-powerful state has been the tradition in China since way before Mao came along. For at least 2,000 years, the Chinese people have depended on a centrally planned economy, while the West has a tradition of decentralized power in private markets. The entrepreneurial Chinese will move to the West, he predicted, rather than try to survive under Beijing. In short, China will be a great imitator but not a great creator. The West still wins, according to Wong.

Professor Wong had many great things to say about China. I’ve invited him to speak at FreedomFest.

You Blew It! China’s One-Child Policy Destroys Its Culture

Advertisement.

“In the matter of our attitude toward age, the difference is absolute, and the East and the West take absolutely opposite points of view.” — Lin Yutang, “The Importance of Living” (1937)

While in Taiwan, a group of us on the FreedomFest Asian cruise visited the home of Lin Yutang, the great libertarian Chinese philosopher. Read my essay on Lin Yutang. It is No. 1 on my list of Top 10 articles on my personal Website, www.mskousen.com.

Lin says that the one big difference between Chinese and American culture was in their attitude toward age. In China, grandparents and the aged are venerated, and the young often ask their elders, “what is your glorious age?” But in America, youth is celebrated, and every effort is made to look younger. “You don’t look a year over 30,” an American might say to a 50-year-old.

Exclusive  ETF Talk: One ‘CHIQ’ Worth Investing In

In China, according to Lin Yutang, “a natural man loves his children, but a cultured man loves his parents.”

I mentioned this old Chinese tradition of venerating the elders to Professor Richard Wong of the University of Hong Kong, and he said sadly that the old Chinese tradition of respecting experience no longer exists. As a result of the one-child policy there, there are four grandparents doting on one grandchild. The large Chinese family has been destroyed. Under the one-child policy, there are no brothers, sisters, nieces, nephews, aunts or uncles. It is a great tragedy. Now youth is celebrated just as it is the West. It is all about young people. If China doesn’t reverse its one-child policy soon, all will be lost.

Advertisement.

In case you missed it, I encourage you to read my e-letter from last week about what investment expert Jim Rogers said during my Asian tour. I also invite you to comment about my column in the space provided below.

share on:

Like This Article?
Now Get Mark's FREE Special Report:
3 Dividend Plays with Sky-High Returns

This newly-released report by a top-20 living economist details three investments that are your best bets for income and appreciation for the rest of the year and beyond.

Get Access to the Report, 100% FREE


img
share on:

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader
LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income PRO (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Options Alert
  • Hi-Tech Trader
LEARN MORE HERE

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • High Velocity Options
  • Intelligence Report
  • Bullseye Stock Trader
  • Eagle Eye Opener
LEARN MORE HERE

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program
LEARN MORE HERE

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Stock of the Week
  • Technical Traders Alert
  • Rapid Profits Stock Trader
LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor
LEARN MORE HERE

George Gilder

George Gilder is the most knowledgeable man in America when it comes to the future of technology and its impact on our lives.  He’s an established investor, bestselling author, and economist with an uncanny ability to foresee how new breakthroughs will play out, years in advance.

Product Details

  • Technology Report
  • Technology Report PRO
  • Moonshots
  • Private Reserve
  • Millionaire Circle
LEARN MORE HERE

DayTradeSPY

DayTradeSPY was founded by head trader Hugh Grossman, a retired internal auditor for a Fortune 500 company. After years of first-hand experience trying out one trading strategy after another, Hugh instead developed his own trading system centered around day trading SPY options. That’s it... Nothing else.

Product Details

  • Trading Room
  • Pick of the Day
  • Inner Circle
  • Online Workshops
LEARN MORE HERE