Originally Posted by
SBQ
Every advisor seems to have a different take on China. I've read that China's recovery is highly dependent on the US recovery as CNBC's sensationalist critic, Jim Cramer has put it, "The USA holds the purse..." meaning, China is an exporting nation; the power of American consumption is the key factor for China's factories, economy to keep rolling. This stems all the way back that not all central banks are the same and that the US Fed is the one that has the advantage of printing $ being the USD as the world reserve currency.
Alibaba is a good example in recent days where it's share price was slammed just on the scent of China's CCP imposing regulations. Their authoritarian gov't may have no bounds and that extra level of risk is they key reason why BABA trades at substantially less than AMZN, despite the former having more turn over sales than AMZN & EBAY combined. BABA's Ant Financial is an eye opener in the future but under the CCP guise? control? we don't know with certainty.
Therefore, it's not so clear cut that China economy will rank supreme leader of the world ; as a disclaimer I too own BABA stock since IPO, but BABA is more than just China - they have operations all over Asia.