Goldman Sachs’ Jim O’Neill spoke with CNBC this morning about the BRICs, the next eleven emerging economies, and how to play the new Chinese consumer.
- 0:30 BRIC idea was inspired by 9-11, notably the need for globalization to accept other systems of government, rather than Americanizing things.
- 1:25 America is not necessarily weakening, but it is sharing more.
- 2:00 On American Congress with actions against China, “Isn’t that just a sport that all your congressional friends enjoy playing?”
- 2:25 For the first 15 years of my career it was Japan, and now it is China. For U.S. multinationals they are more involved in China than they were in Japan.
- 3:05 It’s good that there is a guy like Tim Geithner around, he knows the reality; The U.S. wants to double exports in the next 5 years, and China will be key to that, like it is for Germany.
- 4:05 The next five years are all about China. And the crisis may have been good for China, as they now know they have to consume. For the next 11 countries, that is huge.
- 5:30 Having a stronger currency is part of China’s growing consumption market. Raising wages is another. Greater rights to migrant workers in cities is also huge, and, finally, the social security system needs to be developed.
- 6:20 China is allowing people to move around more freely, and that is helpful to the labour market.
- 6:40 Getting involved with companies that are selling to the Chinese consumer is where to be for the next 5-years. Procter and Gamble and Apple are already succeeding.
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