Taming the Inflation in China: Adam Roseman
- July 27th, 2011
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While many have been worried about the inflation in China, leading economists and analysts find that the Chinese economy is on track and growing. As Adam Roseman of ARC Investment Partners explained in a recent newsletter, the second quarter GDP growth was higher than expected.
He explained that “Spending on low-cost homes and developing inland provinces has countered the impact of debt crises in the U.S. and Europe and China’s own monetary tightening.” Interestingly, Roseman analyzed this government spending and has found that the spending on affordable homes and on water facilities has filled a void that was left by a slump this year because of railway investments.
China has a goal of building 36 million low-cost homes by 2015, and many manufacturers are moving their production away from more expensive coastal provinces to central Henan and western Sichuan provinces. These areas have cheaper land costs and lower labor costs.
Roseman explained that this shift is a very positive decision since, “This shift of investment towards inland China shall serve to help the country achieve balanced growth while it tackles the concerns about inflation and should aid the country’s transformation towards a more consumption based economy given the increase in disposable income among workers beyond the coastal regions.”

