AI Magazine Issue 2 2017

Acquisition International - February 2017 53 For many years, I have been telling my clients that the world cannot afford to ignore China. In just 20 years, China has evolved from being an inward looking ultra-conservative (communist country) to a global giant. I am very pleased to have been given the accolade of Financial Consultant of the Year, Canada, part of AI’s Leading Advisors of 2016 awards. hile China is on a roll and has a considerable amount of momentum working in its favour, the Chinese have tasted what was previously considered forbidden fruit (Capitalism). As we live in a global village today, we need to not only be aware, but also to understand the potential impact of China from a global economic perspective. It has been a given that for many decades, the US is the economic engine of planet earth. I am not suggesting that American know how or creativity is irrelevant, but I am saying that there are other players who have a significant impact on global economics. The current manufacturing environment in China, driven by low labour costs from my perspective, is not sustainable. It would appear that Chinese domestic demand alone is having an impact on costs. It’s no secret that China has made a concerted effort to guarantee that there will be sufficient resources to meet their needs on a go forward basis, by investing in a broad range of commodities like oil and minerals. Company: Benefits Plus Name: M. Gentile, CLU, CHFC, CFP Email: [email protected] Web: www.benefits-plus.ca Address: 1644 Highland Rd W., Unit 5, Kitchener ON N2N 3K7 Phone: + 1 519 886 2707 Benefits Plus Is the Genie out of the Bottle? W 1701AI83 Is the Genie out of the Bottle? While the Chinese have gone from rickshaws to cars in a very short period of time, they need fuel to power the millions of vehicles on the many new roads they have constructed. The recently completed 3 Gorges Hydro Electric Project is the largest of its kind, generating 22,500 megawatts of electricity used to power a massive manufacturing sector. In speaking with Chinese nationals during my travels throughout China, I was able to quickly determine that their political leanings have dramatically shifted in the direction of Capitalism versus Communism. On the Yangtze River (from a ship traffic perspective), the 401 of China, an immense quantity of materials and freight is constantly moving up and down the river in order to feed the country’s growing appetite for goods and services. I think it would be fair to characterise the Chinese people today as very industrious, entrepreneurial and aggressive in their approach towards catching up and potentially surpassing Western growth and technology. China is now the world’s second largest economy. “As we live in a global village today, we need to not only be aware , but also to understand the potential impact of China from a global economic perspective.”