For every naysayer who's convinced that China is the next gigantic bubble that will pop and pull investor money into a gigantic sinkhole, there's another who says that Chinese investment is the way of the future. But with all the possibilities out there, how can you be sure you're not walking right into a bubble?
You can't, that's how. Investment always carries risk. But you can minimize the risk by acknowledging that there are certain sectors of the Chinese economy that will likely not be going away any time soon.
For instance, infrastructure. No matter where you go, roads need to be fixed and buildings need to be built and workers need to be fed, and this in turn requires access to large-scale quantities of commodities. Everything from coffee to steel goes into the building of a city, and is continually required for a city's upkeep. But that's not just the case in China, but the case everywhere. Investing in infrastructure, or the commodities that drive it, is often a safe bet.
Health care is another excellent idea. Even with all the rush to reform it, it's hard to deny that health care is pretty much a necessity. Chances are, at some point in your life, you'll need to see a doctor about something. And that's why most of us, even the self-employed, carry at least some kind of health insurance. Maybe we're not particularly happy about it, maybe we're not satisfied with our options, but the key takeaway here is that we need it.
Lastly, a good point to consider is clean, or green, technologies. If China keeps up on their current path they're probably going to all choke to death on their own smog output with the next hundred years. But if they keep on a push for green tech, as they did just ahead of the Beijing Olympics, they might manage to bypass the period that the United States and Europe had back when they were starting to get seriously industrialized.
So with a little research, and a careful nature to ignore the hue and cry that will likely lead into a bubble, you might be able to pick up on some steady investments that should appreciate in value.
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