Short or long China?

Bill Gross, nicknamed The Bond King, is concerned about the bubble in China. Even Forbes magazine predicts cooling overheated Asian economies. There is also known speculator in decline - James S. Chanos - who predicted the fall of Enron, and now says: "China is like Dubai but a thousand times worse."

While in China the leaders trying to tackle the financial crisis, their American counterparts are still trying to understand what happened and what got us into the current situation. For example, several months before the Beijing restrict speculation in real estate. Increased interest rates, increased requirements for the reserve banks and focused to reduce speculation in shares.

Another smart step is diversification, to reduce dependence on the weak U.S. dollar. China seeks to develop business relationships with each other. Also, with several currency swaps, are deemed to insure against possible currency risks, threatening the economic recovery.

Chinese growth is just beginning. Measured by gross domestic product (GDP), China has made over the past 30 years, more progress than the previous 2,000 years. He was also neglected the fact that China was the world's largest GDP in 18 of the last 20th century.

China remains a country undiscovered opportunities. In the long run, this is a country where you can build the greatest wealth. Legendary investor Jim Rogers recently said: "If you were smart in 1807, you invested in London. If you were smart in 1907 you invested in New York. And in 2007, it is prudent to invest in China. "

Today we see a significant expenditure on infrastructure, pollution prevention, development of technology, medicine and alternative energy. In short, Beijing has big plans.

In one five-year project, China is attempting to connect more than 12 000 miles high speed rail, which will cost $ 200 billion. In contrast, the U.S. project of high-speed trains to 36 billion U.S. dollars seems like a model railway.

In the next decade, China plans to build dozens of airports the size of the international airport in Los Angeles and larger. A reconstruction of the railway network is to completely degrade U.S. national track.

Every two years, China will create an electric distribution network, which corresponds to the capacity of its system in Great Britain. It is little known that China is the world's largest investor in alternative energy.

Despite the recent dispute with the Internet search engine Google is increasingly Chinese connected to the Internet. The total number of people with access to the Internet (400 mil) already exceeds the number of people in the U.S. (330 mil).

An important role 'brains' returning to China. At the beginning of market reforms has many Chinese educated abroad, offered a special bonus, when you return home. Now, many of them returned voluntarily. Some are financial experts, other doctors, scientists, lawyers and professors. Most of them obtained peak positions and fill the knowledge-deficit country. These people mean the new reforms and see them as emerging opportunities.