CHICAGO, Dec 6 (Reuters) – One of the ways to globalize your
portfolio and to tap growth in emerging markets is to recognize
the new China Syndrome. The world’s most populous country is
becoming a primary buyer for resources and technologies for its
China’s growing demand will continue to boost prices on
everything from farmland to oil. The country now consumes more
than 40 percent of the world’s base metals, 23 percent of major
agricultural commodities and 20 percent of non-renewable energy
resources, according to a recent report by the International
Monetary Fund. Those figures are up from single-digit levels in
2000, in terms of net imports as a percentage of world imports.
There are a number of ways to invest in this trend through
exchange-traded funds, but first you need to understand the
breadth of its global implications.
In the view of economist Dambisa Moyo, author of “Winner
Take All,” China’s voracious appetite for everything from
aluminum to water will change geopolitics and drive commodities
prices higher over time.
The Zambian-born, Oxford- and Harvard-educated Moyo visited
22 countries to detail China’s influence in her research for the
book. She says China has been aggressively cutting deals on
every continent to acquire the resources it needs to feed its
people, build infrastructure and make consumer goods. In effect,
China has become a “monopsomist,” a single buyer that will
outbid all other parties to acquire what it needs.