Stitch
As you know I have just returned from a trip to China. Stops included Shanghai, Changsha, Xiangtan, Chengdu and Pi Xian. A couple of observations.
1. Exchange rates varied depending on WHO you were dealing with. The standard (to me) rate of 8.1 - 8.25 were consistently available at hotel and bank currency desks. On the other hand some of my "friends" redeemed the Green Back at 8.65. As you can tell there was quite a difference between the "official" rate and the rate willingly accepted by the 'grey' economy.
2. Sometime ago on this thread in the discussion of whether or not China would devalue a comment was made that if China would spend on infrastructure to replace the potential income lost from export everything might stabilize. I am here to tell you they are spending and how! MAJOR, MAJOR construction going on in all locations I visited. Elevated Railway, Stadiums, Airports, highways, Parks and Schools in Shanghai alone. (One view out of the office window in Shanghai = that encompassed 90 deg. approx. - I counted 37, right, thirty seven jack-up cranes!) More of the same in all the other communities. Hugh spending in new college campuses (one of my target markets)both at the university level and the trade school level. There is also a program call "Two One One" whereby a large amount of money is targeted, every year, towards the IT infrastructure for Higher Learning facilities. This amounts to Billions of Rmb per year. (hopefully I'll get my share ;-))
3. The flood damage is real and will take a long time to clean up. I flew over the "Long River" several times and from 30 - 35K feet it is obvious what the impact has been. There has also been substantial damage in some other areas that are not as newsworthy as the main area. For example the main river that traverses Changsha is approx 1000 Meters wide at the narrow point. In crossing over the high bridge we could see all up and down the river the houses/shops/factories that were half submerged. This will provide another use of Chinese resources.
OFF TOPIC
Went to see the first irrigation project in the world out past Pi Xian absolutely beautiful country. Looks just like the typical paintings of Chinese mountains with fog and mist etc. Really another world. A must see for anyone going in that direction.
Music selection was horrible but managed to get in a few rounds ;-)
rgds
bt |
