danger signals from china , page-7

Exactly Riddick, Chinas internal expansion will have a profound impact as will the developing nations such as Indonesia eventually. A long term outlook is what I take, not just what is in front of us now.

Whilst there ar every obvious short term concerns, the long term outlook is bright.

This article is from last August and a few obviously significant factors have emerged since. However the underlying statements in this report remain and seem to be emerging slowly but surely.

Revised Forecast Advances Date of China Becoming the Preeminent Global Manufacturer
"While foreign demand has supported China’s manufacturing growth in recent years, future expansion will be increasingly diverted to meet growing domestic demand instead. Indeed, income gains and the consequent demand growth within this giant nation will enhance rather than hinder opportunities for external producers."

Developing nations snapshot:
The future holds more than just that of China, although clearly they are the biggest current driver. Besides the rest of Asia and of course India, there is the 'little matter of behind the scenes Indonesia...

Development of large commercial buildings and apartment blocks in Indonesia is increasing dramatically. Construction sites all over the place.
They sold 13,444 motorcycles each day in the first qtr of 2009 and that is reduced demand by around -20%.
Between January and March, 100,260 new cars, vans and trucks were sold, down from 135,603 units recorded in the same period in 2008.
Road and rail infrastructure is in severe need of development and upgrading and is currently being focussed on.
Population of 240,271,522 (1 Jan 2009), Jakarta (Metro centre known as Jabotabek) alone has over 23M people. The 4th largest population in the world behind China, India and the USA (but still only 1/6th of China)
...and they all need somewhere to live (slums are slowly being pulled down and replaced with apartment blocks), transport to work, buildings to house them all, buildings to service them all.
Currently a wide divide between the rich and poor...that will change with time and domestic demand will grow exponentially along with it as people begin to spend more.

Add in India and the rest of the developing Asian nations along with China' own internal demand, the impending population growth, increasing disposable income and the sums will soon add up to significant growth of these regions. Along with it demand for commodities, it simply will occur.

Investment opportunities abound for those willing to look further afield than Comsec and the PC screen.

Short term iron ore prices...who cares, long term is what will make a difference. GBG will reap the rewards over time of that I am very confident.

I too see the glass overflowing...