Alternative Energy Vehicle Development in China: New Ideas Reported by Adam Roseman
In a recent newsletter, Adam Roseman of ARC China reports that China is looking into becoming one of the largest markets for renewable energy vehicles within the next 10 years.
The goal is to offer tax reductions and exemptions to encourage the development of pure electric vehicles. Chinese officials from the NDRC, the Ministry of Industry and Information Technology (MIIT) and the Ministry of Commerce (MoFCOM) hope to have a plan to submit to the State Council after receiving feedback from relevant ministries and departments. MIIT, according to industry experts, has already completed a 2011-2020 draft plan for the alternative fuel vehicle industry.
China’s New Economic Structure
In a bid to escalate efficiency in the face of outdated capacity, the State Council of China called on commoditized industries to establish more mergers and consolidate. This was along the lines of the recent announcement from the Ministry of Industry & Information Technology (MIIT) to eliminate more than 2, 000 energy-intensive and polluting factories. A deadline for this by the MIIT has been set – the end of September for factories from 18 varying industries including construction materials, textiles, dyeing, steel production and more. Companies not complying with such instructions will not be able to get loans, government approval for new investments or access to more land. As well, they may even lose their production license and pollution permits. Such news is important for all those connected with China’s economy and investment (such as those at ARC China, including MD and founder Adam Roseman) since this kind of economic restructuring is set to “bring the country greater independence within the global economy as it will allow the country to increase its bargaining power for imported commodities and allow for further decoupling from the weakened traditional export markets in North America and Europe.”
ARC China & Others Offer Tips for Investing in China
The Chinese market is one that many companies, such as ARC China with Adam Roseman, are focusing on at the moment. China has seen great growth in recent years and great potential for mutual funds and private investors.
Here are a few tips to think about before investing in Chinese funds and in the market there. Make sure to look at the fund’s average market capitalization. This is the average size of company held by a fund. If you don’t want to take too many risks, avoid funds that have average market caps below $6 billion.
Make sure to consider that your investing strategy requires long term thinking. Commit two year money to China. That will allow you to get through inevitable down times, while committing to enough time to, hopefully, see some returns.