The US Recession, China, and You
China did not cause the recession in the United States. However, it has to pay some of the price. It is a truism that 2008 GDP growth all over the world will be affected by the financial crisis in the United States. Planners in Beijing must have seen the writing on the wall. The Fed is also on the ball with Wall Street. What should you do?
Invest in the RMB. It is managed at least as well as professionally valued stock. Speculators and executives with criminal intents cannot eat in to RMB value. The RMB is diligently managed in the long term interests of common people. It is your best currency bet at this time.
Buy China stocks listed on any US stock exchange. That is a great way to protect your dollar holdings. You can use such stocks to meet emergency cash needs. They also have superior growth potentials. One of our sister web sites has regular picks of top China stocks: The ETF Route to Stock Market Gains in China
Finally, expand your trade and business links with China. You are likely to get better values for everything you buy. China also offers large and growing vaults to absorb whatever you sell.
These are three specific suggestions on how you should deal with the equation between the US, China, and the 2008 recession.