Opinion & Insights

Why You Should Be Invested In India or China Within The Next Decade or Sooner.

Written by Manny Sinder

The World Bank has projected that by 2050, India will take over from China as being the most populated country in the world. China’s title has only been compromised because of the decades old draconian law known more commonly as the one child policy. Due to this law, the larger number of deaths than births has led to a soon to become an over aged population and very few younger people will remain to replace them (bad news for a nation of slave labour).

However, as quickly as this law was implemented by the Chinese communist dictatorship, the rulers have recently just as quickly amended the law to allow two children per couple. Why?

Though the rulers of China may never tell us exactly why they changed this law, it is most likely that they had originally viewed the population of China as a threat to their dominance (like most dictators do) when establishing the rule of law for their benefit.

But now decades later and after many born and unborn babies were butchered along with their mothers carrying them with forced abortions, the rulers have probably and finally realised what the rest of us have known for a long time – you need people in the economy for it to be a healthy economy.

All governments like Chinese government make money by squeezing the blood out of the very people they are meant to be serving. They do this by forced tax payments at a rate they set by themselves. They also Tax businesses who want to sell products in their country and by doing so, the people end up paying more tax than they realise – once on their earnings and twice on the goods and service they have to buy because the profiteering businesses from whom they are buying from pass on the taxes they are charged.

Governments of countries like China and India make more money than most developing countries because not only do they provide access to a large number of consumers (the population) to foreign businesses to sell to, they also keep labour wages low to allow large corporations to effectively operate manufacturing warehouses like slave labour camps, which in turn generates more income for the government due to the extra expenditure, transactions, income tax etc. their policies creates.

So what does a two child policy mean statistically? For a population to grow, each husband and wife has to have at least three children. If they were to have just one, then they would not be replacing themselves and the numbers decrease (like in China currently) and by having two children the current population numbers stay as they are. In other words, it is safe to assume that the Chinese population is likely to stay at around 1 billion for years to come unless their rulers change the law again.

If you were to invest in a company solely based on the country it had its biggest share or market dominance in, then you would be an intelligent investor to choose a company who is well established in China as the most populated country in the world. But all that will change in another 33 years’ time as India will have the worlds largest population.

Unlike China, India’s government will not get away with trying to tell couples how many children they can or can’t have. India for all its faults is head and shoulders above most other countries by having a very pro-family culture. And since most couples have three or more children, the population is growing at a healthy rate.

Both China and India, because of their large populations, have some similar and some unique investment opportunities available to investors because of their large populations.

Though I would not touch the Chinese property market with a barge pole due to the sheer amount of inflation in the economy and empty properties sitting derelict, I would consider investing in apartments in India for rental purposes (note; do not buy off-plan as Indian builders are largely corrupt).

Shares are another good option for investors especially of companies who have exclusively branded (copyright) products such as smartphones or cars. For example, Samsung is growing its market share in India and this is clear to see with their increased advertising in and around local communities and a increase handset sales but iPhone is still the favoured phone for the Chinese market and recent reports have emerged that Apple is to start manufacturing smartphones in India.

There are many opportunities in China and India and I strongly suggest any investor to conduct some good research and to visit each country they intend to invest.

One final thought about the changes in populations – especially in Europe, Britain and the USA. The average child per white family in each of these areas is now down to just one. Could it be that in order to support their rule over the masses, the governing bodies of these nations have been applying an open borders policy so that their ageing population which feeds them with tax (blood and guts) can be replaced in years to come?!


Image courtesy of by koko-tewan at FreeDigitalPhotos.net

About the author

Manny Sinder

Manny Sinder is a professional trader, entrepreneur and author. All articles written by the author are solely his opinion and do not intend to vindicate any named person or institutions mentioned.

Enjoy this blog? Please spread the word :)

Follow by Email