It is usually good news for those wanting to make investments in China’s economy, such as Adam Roseman of ARC Investment Partners. But right now such investors may want to watch out a little. Recent news as reported in CNBC, is indicating that the country’s economy might be encountering “significant headwinds from the slowdown in Europe.” Given that the region is the country’s principal export market, according to North Square Blue Oak chairman Derek Han, this is leading to a “certain amount of concern.”
China Impacted by Europe and America
Even though it is true that it is anticipated that China’s GDP will not be reduced in the next few years, the country is not an island and relies heavily on other places. Thus, economic problems in both America and Europe could really take its toll. As Han noted, “Europe is the number one export market for China—much more than the United States. Seeing the sort of confused last minute patching together of a so-called solution—which isn’t that much of a solution at all—is an element of great worry.”
So all investors should take note before taking the plunge; while China still remains a very favorable investment opportunity for foreign investment companies like ARC Investment Partners, there are certain potential problems that have to be considered.