Follow China & East Asia AlertsStart the conversation
Leave a Reply
I have spent more than 35 years in global markets, and if there's one thing I've learned, it's that you never, ever take anything China says for granted.
Yet, that's exactly what millions of investors are doing when it comes to China's "One Belt, One Road" policy. Most will pay a terrible price when the dust settles.
You, on the other hand, have an opportunity to get on board immediately with a recommendation at the center of it all.
Not tomorrow. Not next month. Not next year.
China's New Silk Road
China's ambitions are extraordinary and unprecedented.
They're also a new development, at least if you believe The New York Times, which published a very well-done article on China's "One Belt, One Road" policy on May 13 as part of its Business Day feature.
In reality, the "One Belt, One Road" policy dates back to 2013, when President Xi Jinping announced the Silk Route Economic Belt (SREB) and the Maritime Silk Route (MSR), intended to guide national vision and growth during state visits that year.
I first caught wind of preparations, though, during the Asian Financial Crisis of 1997 when China realized that it relied too heavily on trade with the United States, and that structural problems within its economy could be solved by protecting its competitiveness outside its borders.
It wasn't easy to be a lone voice in the wilderness at the time, but I didn't give up then any more than I will now.
Entire countries would be faced with the decision of their lives, I reasoned – go along for the ride or get left behind. As I saw it unfolding, Chinese growth would be the single-largest creation of capital in mankind's history.
Fast-forward to today.
Investors now have to make a similar decision. No longer needing to hide its plans for fear of being discovered, China's just played its hand for the world to see. Not only that, but Beijing invited world leaders to hear what that nation has in store for the foreseeable future.
Noted President Xi Jinping, "We have no intention to form a small group detrimental to stability. What we hope to do is create a big family of harmonious co-existence."
Did you catch that?
Most Western media glossed right over this, which is not surprising given that very few people understand the subtleties of Asian thought as conveyed through translated language.
Xi is putting the planet on notice that China intends to set the world's tone for globalization as it sees fit. At the same time, he's very deliberately sending a message to Washington that China is going to fill the void created by generations of failed American foreign policy and, specifically, by Trump's "America First" programs.
If you're just joining us, the "One Belt, One Road" plan is a $5 trillion initiative being undertaken by China to remake the world in its image. Not "just" the $1 trillion everybody thinks.
It's a …
Join the conversation. Click here to jump to comments…
About the Author
Keith Fitz-Gerald has been the Chief Investment Strategist for the Money Morning team since 2007. He's a seasoned market analyst with decades of experience, and a highly accurate track record. Keith regularly travels the world in search of investment opportunities others don't yet see or understand. In addition to heading The Money Map Report, Keith runs High Velocity Profits, which aims to get in, target gains, and get out clean. In his weekly Total Wealth, Keith has broken down his 30-plus years of success into three parts: Trends, Risk Assessment, and Tactics – meaning the exact techniques for making money. Sign up is free at totalwealthresearch.com.