As the U.S. backs out of international trade deals, China is picking up the slack...
China has thought up the most ambitious infrastructure plan seen in generations – covering dozens of countries and worth hundreds of billions of dollars. And it's already putting it into action.
That's the biggest thing I learned while on our DailyWealth team's 10-day trip to China.
For me, the trip with Steve was eye-opening...
Steve's been going to China looking for investments for 22 years – he's seen it all before. On the other hand, this was my first trip. So he asked me to share my thoughts with you as a first-time visitor.
I could easily tell you about the well-dressed commuters in Beijing and Shanghai... the towering, modern apartment buildings everywhere you look... and the nearly spotless highways and city streets. But if you've been reading DailyWealth lately, you already know that stuff...
So instead, I want to talk about something bigger. I want to share where China is looking during the next decade.
In short, the country is opening up to the rest of the world – to a degree that I hadn't imagined was possible before I visited it myself. But after seeing it firsthand, and after hearing from speakers at multiple conferences in China, I'm convinced...
China is embarking on the biggest global infrastructure project the world has seen in generations. Let me explain what I mean...
Up until recently, China focused its infrastructure investments within its own borders...
Since the 1990s, China has invested hundreds of billions of dollars in rail, highways, power, water, and more.
China knows how to manage these big projects. On this trip, we've seen firsthand how much it has built in the past 20-30 years alone... like the 100-story-plus skyscrapers in Shanghai.
But now, the focus is changing...
Now, China is exporting its infrastructure know-how to developing nations. It wants to connect China all the way to Europe, creating trade routes through land and sea – like Marco Polo centuries ago.
China's plan is known as the Belt and Road Initiative ("BRI")...
The plan covers more than 68 countries... with a focus on building rails, airports, highways, oil and gas infrastructure, optical cable, and communications technology.
President Xi Jinping first announced it in 2013. The big idea is to boost economic growth across Asia, Africa, and Central and Eastern Europe. (As a side benefit, as China boosts ties with these poorer nations, you can be sure it will increase its influence over them too.)
So far, $4.4 billion worth of BRI projects are approved and fully funded. But this is just the beginning...
For example, in just 10 major Southeast Asian countries, as much as $434 billion could flow in between 2016 and 2020 based on their infrastructure needs... And remember, BRI includes more than 68 countries in all.
China is investing in its future, as well as the futures of dozens of developing countries. This undertaking will have far-reaching effects – not the least of which is increasing China's influence in the world.
Just a couple years ago, I never imagined I'd see the day where the U.S. – the leader of the free world – is retreating from international trade deals like the Trans-Pacific Partnership, while "communist" China is making new trade deals with dozens of countries. But it's happening today.
The Belt and Road Initiative is just one more way that China is looking to the future. It should lead to long-term opportunities for investors.
Steve has said it before... Get your money there first...
Good investing,
T. Mallory Fox
Editor's note: Most Americans are stuck on the China of 20 years ago. This perception will vanish as China opens its doors to the world... But today, no one is paying attention. And that means you can position yourself for incredible profits. We've put together a special offer on Steve's most exclusive recommendations for investing in China... Click here to learn more.
Further Reading
"Shanghai and Beijing are two of the planet's most advanced cities," Steve says. "You might not want to believe that. But it is true." Read more about how much China has built in just the past 20 years right here: The Largest Gap Between Perception and Reality on Earth.
"China is getting wealthier," Vic Lederman writes. "And it's happening in a short period of time." Learn more about how China has boosted its economic output – by thousands of percent – right here: China Vowed to End Poverty, and It's Working...
China's Belt and Road Initiative ("BRI") is a big plan. But until recently, no simple way existed to invest in the idea. That's where this fund comes in...
THIS COMPANY'S 'TROPHY ASSETS' ARE A MAJOR DRAW
Today, we look at a company with a portfolio of well-known "Trophy Assets"...
These are highly valuable, one-of-a-kind assets that give companies several key advantages. They're an irreplaceable draw... And they are so desirable that their owners will always have access to financing. Today, we look at a company with this unique kind of edge...
We're talking about Madison Square Garden (MSG). It owns some of the most valuable theaters, arenas, and sports teams in the United States. That includes the Madison Square Garden arena in New York, the Forum music venue in Los Angeles, the New York Knicks of the NBA, and the New York Rangers of the NHL. MSG has built a sports and entertainment empire... And its success is reflected in growing sales. Revenues climbed 18% to more than $1.3 billion in fiscal year 2017.
As you can see in the chart below, MSG shares are soaring as well. They're up more than 40% over the past year. As people continue to flock to MSG's properties, expect this entertainment empire to endure...
