China is Taking Over What the U.S. is Leaving Behind

As the U.S. backs out of international trade deals, China is picking up the slack…

China has thought up the most ambitious infrastructure plan seen in generations – covering dozens of countries and worth hundreds of billions of dollars. And it’s already putting it into action.

That’s the biggest thing I learned while on our DailyWealth team’s 10-day trip to China.

For me, the trip with Steve was eye-opening…

Steve’s been going to China looking for investments for 22 years – he’s seen it all before. On the other hand, this was my first trip. So he asked me to share my thoughts with you as a first-time visitor.

I could easily tell you about the well-dressed commuters in Beijing and Shanghai… the towering, modern apartment buildings everywhere you look… and the nearly spotless highways and city streets. But if you’ve been reading DailyWealth lately, you already know that stuff…

So instead, I want to talk about something bigger. I want to share where China is looking during the next decade.

In short, the country is opening up to the rest of the world – to a degree that I hadn’t imagined was possible before I visited it myself. But after seeing it firsthand, and after hearing from speakers at multiple conferences in China, I’m convinced…

China is embarking on the biggest global infrastructure project the world has seen in generations. Let me explain what I mean…

Up until recently, China focused its infrastructure investments within its own borders…

Since the 1990s, China has invested hundreds of billions of dollars in rail, highways, power, water, and more.

China knows how to manage these big projects. On this trip, we’ve seen firsthand how much it has built in the past 20-30 years alone… like the 100-story-plus skyscrapers in Shanghai.

But now, the focus is changing…

Now, China is exporting its infrastructure know-how to developing nations. It wants to connect China all the way to Europe, creating trade routes through land and sea – like Marco Polo centuries ago.

China’s plan is known as the Belt and Road Initiative (“BRI”)…

The plan covers more than 68 countries… with a focus on building rails, airports, highways, oil and gas infrastructure, optical cable, and communications technology.

President Xi Jinping first announced it in 2013. The big idea is to boost economic growth across Asia, Africa, and Central and Eastern Europe. (As a side benefit, as China boosts ties with these poorer nations, you can be sure it will increase its influence over them too.)

So far, $4.4 billion worth of BRI projects are approved and fully funded. But this is just the beginning…

For example, in just 10 major Southeast Asian countries, as much as $434 billion could flow in between 2016 and 2020 based on their infrastructure needs… And remember, BRI includes more than 68 countries in all.

China is investing in its future, as well as the futures of dozens of developing countries. This undertaking will have far-reaching effects – not the least of which is increasing China’s influence in the world.

Just a couple years ago, I never imagined I’d see the day where the U.S. – the leader of the free world – is retreating from international trade deals like the Trans-Pacific Partnership, while “communist” China is making new trade deals with dozens of countries. But it’s happening today.

The Belt and Road Initiative is just one more way that China is looking to the future. It should lead to long-term opportunities for investors.

Steve has said it before… Get your money there first…

Good investing,

T. Mallory Fox

Source: Daily Wealth