New York, NY (PRWEB) October 23, 2012
In a recent article in Profit Confidential, a leading financial newsletter of Lombardi Publishing Corporation, a 26-year-old consumer publisher that has served over one million customers in 141 countries, financial expert George Leong reports that next month marks a once-in-a-decade change in China’s leadership. According to Leong, a change in the republic’s leadership could usher in a more competitive economic environment, similar to that in the U.S.
In the article “Don’t Count China Out: Help Is on the Way,” Leong notes, “China will be undergoing a sort of metamorphosis, as the country gets set for its once-in-a-decade change in leadership next month. Whoever the new president and prime minister will be…the focus is clear, as the country will look at breaking up the monopolies.”
In Leong’s view, creating a more competitive business climate in China could drive entrepreneurship and a more active business climate akin to that of the U.S.
Leong observes that the motivation for the pending change is the stalling in the Chinese and global economy. The country’s third-quarter gross domestic product (GDP) contracted to 7.4%, which was inline with the consensus estimate. While GDP growth in China has declined for seven straight months, there are some bright spots.
“The 13.0% year-over-year rise in the per-capita total income of urban households is interesting,” he says, noting that this is significant since the middle class in China, similar to America’s middle-class, will be depended upon to spend to drive the economy.
According to the Profit Confidential expert, what happens in China next month will have a direct impact on both the U.S. economy and global economy. The economic interconnectedness of the global superpowers has become more profound over the last decade, he explains; and as an investor, Leong notes, it’s important to be fully aware of the political climate in China.
Leong adds that the newly elected leaders have a lot on their plate. Specifically, they will have to address the need for further economic stimulus in order to drive domestic consumption. Even though China has $3.0 trillion in reserves, it cannot simply pump money into the economy and hope for growth, states Leong. He reasons that China must come up with a strategy to encourage spending and drive GDP.”
“The bottom line is that there’s lots of work ahead for the new Chinese leaders,” concludes Leong, stating that he expects the country to continue to introduce new monetary stimulus into its economy.
Founded in 1986, Lombardi Publishing Corporation, which has served over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more information on Lombardi Publishing Corporation, and to get their popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com. Or visit http://www.lombardipublishing.com/customer-service.html.