Colin here. We hear a lot in the news about the Chinese hurting US markets. It’s politically convenient to blame others for problems.
The truth is that China represents the largest single opportunity in the history of the United States. Their consumer market is just developing, conglomerates have not yet converted industries into oligopolies like what has happened in the US. It’s a wide open opportunity for us.
Tim Cook, chairman of Apple, has expressed similar thoughts. He stated he has never seen such an opportunity in his career as what China represents to Apple. The truth is that China alone could double the size of Apple. That’s incredible when you realize that Apple is earth’s most valuable company already.
Imagine a retail store that averages 10,000 customers a day and that does hundreds of millions of dollars a year in sales. Now, you understand what the average Apple store is really like in China. And, Apple can likely increase the number of stores in China something between tenfold and a hundredfold.
Usually, when I talk about the opportunities in China I am dragged into a discussion about impoverished people who make $1 a day. This is not productive conversation. Yes, of course they have their poor. But here are the facts:
1. The United States has four times the percentage of its population living in poverty as does China, according to the CIA world factbook.