Jim Rogers on China economy 2024

The legendary investor and Chairman at Rogers Holdings Jim Rogers talked to CGTN Europe on China’s economic outlook in 2024.

Transcript

00:00 Jim Rogers is the chairman of Rogers Holdings and co-founder of the Quantum Fund.

00:04 It will be a bumpy recovery in China because of the virus and because of the property collapse.

00:12 But China is on the rise, is rising again, but it will not be straight up and it will be slow.

00:19 It will partially depend on the rest of the world, but the rest of the world is okay, at least for now.

00:25 And what areas in particular will drive this growth? Service sector forecast to do well, cars too.

00:31 What do you think we'll see driving China's economy in 2024?

00:37 Well, the main thing that's driving China's economy is that it collapsed.

00:42 It had a property collapse and the virus caused problems.

00:46 So any economy, wherever, if it drops a lot and then it hits bottom and turns around,

00:53 that alone drives the economy and the recovery is usually quite robust, at least in the beginning.

01:00 And that's what's happening in China.

01:02 And the government, of course, is doing everything it can. It's trying to help the economy.

01:07 But the main thing is when you hit bottom and turn around, you usually have a good time for a while.

01:14 And what about consumer confidence and consumer spending?

01:18 How much will a bounce back in those affect things?

01:22 Well, everybody, many people in China, of course, are devastated or at least hurt by what happened, by the property collapse.

01:30 It was a huge property collapse and the virus collapsed in China. They were locked down pretty dramatically.

01:37 So those are the things that hurt China.

01:39 And if nothing else, when those things end, any economy will start recovering.

01:45 And the government, of course, is trying to do what it can to spend money here, spend money there to help people.

01:52 What happens in China, of course, affects its trading partners.

01:56 What's the trade outlook of China, do you think?

01:59 Well, at the moment, most countries in the world are doing fine.

02:04 They, too, are recovering from the virus and from other setbacks.

02:08 So most people, including China's major trading partners, are doing better, are doing fine, I should say.

02:14 Japan, Korea, America, you know, the countries that China does big trade with are doing fine so far.

02:22 So that's trade. What about investment? How important is China for foreign companies?

02:28 Oh, China's the second largest or largest economy in the world, depending on who's measuring.

02:36 So if you're the largest economy in the world, you're everybody's friend and you're the trading partner of many, many people.

02:44 And that's the case with China. China's the largest trading partner of many countries in the world now.

02:50 And what sectors in particular do you think we might see investing more in China?

02:56 Well, no, as the economy recovers in China, more and more investors will return to China or be drawn to China.

03:05 Including me, I am trying to invest more in China now.

03:09 But I'm not the only one. There are a billion, 400 million people in China, Robin.

03:15 That's a big market for most people. And there's a lot of capital and investment in that country and trade.

03:22 So it's extremely important to many people.

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