China has stepped to the forefront of solar energy with its slogan "Promote green development! Develop clean energy!" The country's National Energy Administration revealed that its solar power production more than doubled in 2016, hitting 77.42 gigawatts by the end of the year. China is now the world's biggest generator of solar-based electricity in terms of capacity. Of course it has a long ways to go relative to its population. Japan, Germany and the US each has roughly 40GW of installed capacity.
With over a 1.37 billion people, Chinese spent more than half a trillion dollars eating out in 2016. In a recent report, Dianping Meituan, which offers food-ordering and delivery services, estimates the country spent 3.5 trillion yuan ($507 billion) dining out in 2016. This number eclipses the GDP of Sweden ($496 billion), Belgium ($455 billion), Norway ($387 billion) and many other countries.
Another interesting fact from the report is that the country's favorite meal out is hot pot with roughly 22% market share. For those not familiar with hot pot, it consists of a simmering metal pot of stock at the center of a dining table. While the pot is kept simmering, it is basically a do it yourself meal as you cook your favorite meats, seafood, veggies, dumpling and noodles. The cooked food is usually eaten with a dipping sauce.
About five years ago, I was traveling on business to Los Angeles. I was surprised to find kiosks at Alamo that processed my reservation, assigned my rental car, and directed me to the spot for pick up. As I drove out, I marveled, "Wow, I was in and out of there without talking to single person!" Today, this once novel concept is quickly becoming common place.
At the recent Berkshire Hathaway shareholder meeting in Omaha, vice chairman Charlie Munger said that he thinks that stock market investors may be able to find better investment opportunities in China. He said, "I do think the Chinese stock market is cheaper than the American stock market. And I do think China has a bright future."
While many of us in America look to Silicon Valley for innovation, perhaps we need to look even further west as China's e-commerce giant JD.com is leading the way in drone delivery. The company has already delivered packages via drone and last month announced plans to build 150 drone launch facilities for unmanned aerial vehicle delivery (UAV) parcel delivery. They have already secured government approval (which Amazon has had trouble with in the US) in select provinces in China to make deliveries.
The last couple of weeks have been dominated by two topics: Greece and China. Last week we tackled what a Greek default means to your investment portfolio. This week we give our insight on the Chinese market which has tumbled in the last month. At Runnymede, we want to give our readers a different perspective than the alarmist headlines from other news sources. Unfortunately with internet news, they are paid on clicks so it's reliant on attention grabbing headlines, not necessarily the reality. We don't simply rehash what the mainstream news reports on. We look deeper beneath the surface to help you make informed investment decisions.
China Sets GDP Dial To 7; Hikes Military Spending
Mar 4, 2015 @ 10:43 PM
For Investors, A Better Way To Look At China
Dec 31 2014 @ 03:23 PM
"The 19th century belonged to England, the 20th century belonged to the U.S., and the 21st century belongs to China. Invest accordingly." - Warren Buffett
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