China is adapting and developing a new economic structure built around the digital economy. Investment opportunities in this new economy abound, but there are fewer for investors who want arm’s length exposure.
The structure of China’s economy is changing and this impacts investment strategies and portfolio allocation. In some ways, it is helpful to think of China as being in the same position as Detroit in the 1960s. Detroit was the home of General Motors and the capital of automobile manufacturing.
However, the industry’s economics changed and in the 1980s, Detroit became a dangerous, dirty, rundown city because it failed to adapt.
