Well, where do you think their growth is going? Because we're seeing that they've declined the most in five months, their pace, and it's just very confusing. I mean, are they slowing or are they really very strong but they're pretending to be slowing? You know, that they're trying to obfuscate that they're still growing.
Well, Debra, four million people are moving from rural to urban. Although we heard Foxconn is moving their plans to rural because there's such a mismatch. There are labor shortages throughout China in the cities. So you know that those buildings are going to be filled. They will be filled. It's just taking a little longer time. You don't need more buildings, so you'd like to see them cut back in that. But you need to see infrastructure. They have a water and sewage system that's a 100 years old. And there's much that the government should focus on that would not be as counterproductive, is what the private sector is doing, but I hold hopes that China will be rational when the new government really takes hold in March. I don't want to sell American derivative plays on China that are soft goods, like a Pepsi (PEP), or a Proctor & Gamble (PG), or even a GE (GE) on hard goods. But I respect the fact that the demographic trends are very in much in China's favor in terms of rural to urban. But, boy I wish that they would play fair. They do not play fair.Debra Borchardt: All right, Jim. Well they certainly don't play fair and that makes it even harder for our markets to figure out what they're going to do. So keep your eye on China and especially keep your eye on what's going on in China in March. --Written by Debra Borchardt in New York.
>To contact the writer of this article, click here: Debra Borchardt. Follow @WallandBroad
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV