Will China's Economy Surpass the US? Maybe

China has beat Japan as the second-largest economyearlier to peg to the dollar (see our previous post).
in the world. With an average GDP growth of 10%This in turn makes Chinese exports more expensive,
for the last 30 years, a population of 1.4 billion, firstbut imports cheaper. Be on the lookout for trades
place in the world's and consumption and productionconnected to rises in production expense and major
of coal, steel and energy, and the world's largestcompanies such as Walmart and Target, who have
exporter and second-largest importer of good, theoverseas factories. Other companies which have
country stands a chance at becoming number onebeen cheaper alternatives to American products,
soon. (It is also ranks first-place in the world in coalsuch as Toyota and Honda, may also present good
production).trading opportunities.
Other news in China is the country's allowing foreignChinese stocks and markets are a new opportunity
investors to invest in the Chinese market. A pilotfor traders and trade operators should be aware of
program will allow foreign investors to buy bonds inthis and change their platform accordingly. The Asian
the Chinese market using Chinese currency.market will also be influenced by its #2 neighbor.
Shanghai is set to become a world leader in financeRead more about online trading in the binary options
by 2020. As a result, they are tapping into corporatemarket.
investment abroad and could allow foreign companiesThen Again, Maybe Not
to sell shares in Shanghai as early as next year.Of course, not everyone agrees that China will be
Rumor persists that Shanghai may allow foreigngrowing so fast. A couple of major problems loom:
investment in yuan-dominated private equity andChina's GDP has indeed been growing rapidly in the
venture capital funds as well in the near future.last 30 years, but that could be because it has a
Since the yuan ended its peg against the dollar onwhile until it reaches a high rank. Chinese GDP is still
June 19 it has risen by.5 percent. Announcement ofbelow the 100th rank in the global economy. Another
the end of the peg causes a 4.8 percent increase infactor making it difficult for China to climb to the top
Hong Kong yuan deposits in June. China is nowis the state of the current global economy, the
making it easier for yuan transactions between banksdecrease in demand for exports and the rise of
and companies in Hong Kong as well as thoseunemployment.
transferring cash in order to buy wealth-managementSome experts even feel that China's GDP will fall in
products.the next few years. Hedging might be a great digital
Traders might want to pay attention to the Asianoptions and forex strategy for traders of forex and
currencies, in particular the yuan, the Chinesebinary options for those who are cynical about the
currency which the Chinese government decidedChinese takeover of the world.