As we have mentioned in several blogs and reports, lately, one of the best businesses to be invested in, in China, for the future is automobiles and related, including highway owners and builders.  As we have also mentioned, few people, in China, currently own cars.  You can link to this recent article about car sales, in China, finally overtaking sales, in the U.S., from the NY Times:  http://tiny.cc/ASvRD .

Think about that! China has 6 times the population of the U.S. but the same demand for cars, finally.  That means there is, basically, 6 times the potential to go.  There are already hundreds of auto repair shops, just near our neighborhood, in Guangzhou.  Most of them do not even have a modern hydraulic lift or a pit, like repair shops in any small town, in the U.S.  We even have a friend whose family is rich because they have a little shop that sells kits and parts to soup-up those little Honda, like some high school kids do, in the U.S., but here, they are hot cars and are generating enormous cash flows for a little shop, in a big city.  My twenty-three-year-old protégé has never driven a car or taken driving lessons, although her father does own a car.

Even toll road companies, then, are a growth opportunity, in China.  As is anything else that has to do with driving or cars.

It is even more than that!  There are many items from the West that the Chinese would love to have, like cars, but because of the mispricing of the Yuan, they cannot afford cars or most other imported good.  I even have a hard time finding Bayer aspirin.  As the Yuan price changes and as China lowers trade barriers and tariffs, there will be many things to sell from the West to China.  The Times article concludes that Chinese tastes and preferences will dominate the markets of the future.  We do disagree with that.  They will just want all of those great things Western that they longed to be able to afford and own, for a long time.  There will, thus, come a time when China will turn from net exporter of its goods to net importer of Western goods and exporter of Western companys' goods made at plants, in China, giving Chinese labor jobs.  Be ready for that turning point!