Making Money Minute with Ron Hiebert - China & Profits

The massive shift in manufacturing to China wasn’t a globalist conspiracy. Manufacturing moves where it can economically survive, and the problem, is the high cost of western goods, have priced many of them out of the market. There is an old saying, “When the Chinese walk into a room, profits walk out.” Even low cost manufacturers in China, due to razor thin margins, find it hard to compete profitably with one another. China’s stock markets, are trading at the same levels they were at two decades ago, signalling little, if any, profit growth. If Chinese companies enter a sector you are invested in, beware, of the great profit vanishing act.

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