Dear Fellow Investor,
This week marks the 19th anniversary of a tragic day in Chinese history. An event that could have changed the economic environment in China today, if the Chinese people had given up hope and turned their backs on economic progress.
Here's what happened:
Nineteen years ago yesterday, thousands of Chinese college students gathered at Tiananmen Square in Beijing. That day was the culmination of a series of protests against economic problems such as rampant inflation, lack of career opportunities, official corruption and the slow pace of economic reforms.
These initial protests broke out two months earlier with hundreds of college students gathering in Tiananmen Square. At first these were peaceful events, and usually in the form of a sit-in. But on June 4, 1989, these peaceful gatherings turned into a massive protest that ultimately spun out of control.
The protests were crushed by the military. That day, free enterprise suffered a temporary setback in China.
The Chinese Spirit Prevails
Despite such a tragic event and an incredible loss of life, the Chinese spirit wasn't crushed. And the desire for economic progress remained strong.
Even though many Chinese students risked their lives to stand up for something that they strongly believed in -- and lost -- they didn't let the Tiananmen Square event stop their desire for better lives.
Since the Tiananmen Square events, the Chinese people have pushed forward and much has changed in the country over the past nineteen years. Sure, college students in China still rally from time to time, but many of these demonstrations are now in support of the Beijing government instead of against it.
The reason that Chinese opinions of their government have changed so drastically in the past 19 years is simple. Most Chinese are highly practical, and they don't really care about political reform as long as their government can help them prosper. In that regard, the Chinese government has been very successful, as China's economy has been growing at double-digit rates and more and more Chinese have increased their wealth.
Since 1980, over 400 million Chinese have been lifted out of poverty -- more than the total number of the U.S. population. Much of this increase in wealth and a growing middle class can be attributed to the vast amount of economic opportunities available to well-educated Chinese college students.
What the Chinese government has learned over the past 19 years and now understands is that the regime's main source of legitimacy is built upon economic prosperity. As a result, Beijing places economic growth as their number one priority. And this stance has paid off greatly for the country over the past few years.
Profit from China's Economic Growth
Now is the time to take advantage of the growth happening in China as the country strives to join the world's economic superpowers. As my China Strategy subscribers can tell you, the opportunities in China are real and of the life-changing variety.
Here's an example of the types of profits we're already sitting on:
- 194% gain in China's top wireless service provider;
- 188% in China's leading education services company;
- 175% gain in China's offshore oil drilling company;
- 158% in China's top medical device manufacturer;
- 148% in China's Expedia;
- And 43% in China's Google.
Get the full details on each of these top picks by joining China Strategy today.
Robert Hsu
