November 4, 2009
Cabot China editor Paul Goodwin was interviewed live today on CNBC in a segment called “Disney Comes to China.” CNBC’s Erin Burnett asked Goodwin how U.S. investors can benefit from the new Chinese consumerism resulting from China’s fast-growing middle class. Goodwin explained that until recently 40% of Chinese growth came from exports, much of it to the U.S., but now Chinese exports have shrunk to 20% as new Chinese consumers are now buying their own goods and services.
As China’s middle class continues to grow and U.S. companies learn how to market to Chinese customers, Goodwin believes there will be an enormous opportunity for U.S. companies to sell goods to the new Chinese consumer. But until then, he recommends U.S. investors tap into this growth by investing in Chinese companies that are benefitting from the trend.
Goodwin recommends AsiaInfo Holdings (ASIA), a telecom software company that’s benefitting from China’s infrastructure boom, and Wonder Auto Technology (WATG), a supplier of car parts to Chinese automakers.
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