I’d say that we don’t do a lot of Op-Ed on BMB, but the truth is, we swing opinions into almost every post. Now, from HK, we hear some observations and opinion from WK:
There are three “entities” to China—China Mainland, Taiwan and Hong Kong. Investment opportunities are different in each. The majority of money made in HK is in real estate or is retail related while China has broader range of opportunities. Right now, China is like the US was in the 20’s during the industrial revolution. It is a gold mine where everyone wants a stake. China has 4 times the population of US. While everyone in US already owns “everything” (i.e. car, TV, cell phone, etc), many Chinese just now have the disposable income—and they are looking to spend it.
Culturally, people in China are becoming more materialistic. Just as in the US, they want to let others know they have the money to buy goods and services. There is much money to be made in mainland Chinese.
What about Taiwan? Taiwan has lost some of its shine because high tech, specifically semi-conductors, has passed its prime and has not yet evolved into something new. Taiwan had a very strong economy during the 90’s because of the semiconductor manufacturing industry.
Right now, Hong Kong is better able to capitalize on China’s growth in a way that Taiwan cannot, mainly due to political issues. While Taiwan is busy with its claim of independence from China, Hong Kong is already a part of China—granted, Hong Kong is treated in a special manner by China because of its former standing and already booming economy. It is a gold mine that China does not want to see go bust.
It has been more difficult for China and Taiwan to do business. The good news is that the business relationship seems to be improving. There are now direct flights across the strait between China and Taiwan. And Taiwanese have started to invest into China, and cater to growing wants and needs of the population there.