China: What You Need to Know Now

Earlier this year, in a Barron's interview, legendary investor Jim Rogers said, "The 21st century is going to be the century of China." When asked about investment opportunities in China, Rogers replied, "Perhaps the safest investment is the renminbi, the Chinese currency."

Around the same time, GE (GE Quote) announced plans to invest up to $2 billion in China via acquisitions and other deals over the course of the next three years.

So how much do you need to know about investing in China -- today?

The following are several current investment angles on China from TheStreet.com.

From Asian Stocks End Higher on China Stimulus: Asian stocks closed higher Monday [Nov. 10], stocks in Europe rose and stock futures in the U.S. were higher after the Chinese government announced a $586 billion (4 trillion yuan) stimulus package aimed at helping the country weather the global financial and economic crisis.

The CSI index in China finished 7.4% higher after the Chinese government unveiled a package designed to boost domestic demand amid signs China's export-driven economy is starting to feel the effects of the global slowdown.

Read the full version of Asian Stocks End Higher on China Stimulus.

From Don't Count on China:

While the Chinese economy may be still growing, it needs to grow at something like 6% a year just to absorb new entrants into the workforce, as the move from the countryside to the city is massive. The U.S. doesn't export that much to China, so the biggest effect for us could be rising interest rates, as our financing needs will need more attractive terms to entice buyers.

Read the full version of Don't Count on China (RealMoney access required).

From China's Plan Will Have Limited Effect on U.S.:

News of China's massive economic stimulus plan has helped markets worldwide, but for the U.S. the impact will be reduced by a number of important factors. For starters, China must of course finance its plan, which could mean it will have to either sell its holdings of U.S. Treasury and agency securities or slow its rate of accumulation in these securities (China holds about $1 trillion of U.S. securities).

This will be necessary if China's budget surplus continues to shrink and if China's accumulation of foreign-exchange reserves slows, as it surely will as a result of the global economic slowdown.

Read the full version of China's Plan Will Have Limited Effect on U.S. (RealMoney access required).

From China Watch: U.S. Firms Shelling Out (Video, Nov. 10):

Research Manager Dave Peltier explains why huge U.S. firms are pouring cash into China despite the slowing global economy and how investors can play the trend.

Peltier: "These companies are flush with cash and they need to invest it somewhere... China not only has the built-in population, but it's a population that's becoming more affluent. So especially for a company like Pepsi (PEP Quote) to go in there, I think it's great. And not to mention, you have a lot less currency risk because the currency is pegged or flat... If things thing deteriorate even more in the U.S., I think you may see a little bit of pullback from going overseas. But again, for the companies that are focused on growth... those companies will always be looking overseas."

To watch the video, click the player below:

Related: Pepsi to Invest $1 Billion in China.

Plus, don't miss these China-focused videos on TheStreet.com TV: China Watch Mail Bag: Foreign Shopping (Nov. 8: One viewer asks whether recent overseas M&A activity by Chinese enterprises means they're not paying attention to what's happening back home.) and China Watch: U.S. Too Cheap to Ignore (Nov. 7: Sham Gad, managing partner of Gad Partners Fund, says he's focused on cheap U.S. stocks. His favorite way to play China now: oil.).

From Kusick on A-Power and Solar, Wind Investing:

In managing the Breakout Stocks model portfolio, one of our favorite names in the alternative energy space is a small Chinese company, A-Power Energy Generation Systems (APWR Quote)

Shares of A-Power suffered mightily as investors fled small alternative energy names at the end of the summer -- a move exacerbated by the panicked selling that marked the worst October in recent stock market history.

Still, we've remained very excited about the long-term potential in this name, based on its attractive position to benefit from the Chinese government's plan to invest in wind power over the next decade.

Read the full version of Kusick on A-Power and Solar, Wind Investing.