The Rising Influence of Rising Affluence

[DewDiligence]

The one child/family policy has impaired their future.

True; however, there are loopholes in China’s one child policy that are a mile wide, which is why infant formula in China is such a fast-growing business (#msg-74810095, #msg-74915677, #msg-74811918).

A lot of investors shy away from China companies given the fraudulent practices.

I don’t invest in any Chinese companies, ever. Rather I invest in multinational companies who derive a substantial proportion of sales and profits from business in China and other emerging markets; this style of investing is the premise of this message board.

I suspect the real GDP of China is half of what they report.

That’s impossible unless the multinational companies discussed on this board are parties to a massive conspiracy to over-report their sales and growth rates in China.

Bottom line: I’m willing to believe that China’s official economic statistics are exaggerated to some degree, but not to anywhere near the 100% overstatement of GDP that you posit.