The answer is a resounding “you bet”. You only have to take a cursory look at modern Chinese economics over the last few decades to understand that what has happened eight time zones away does have an impact on our daily lives in the UK. If you’re old enough to remember, consider how many quality Chinese products you could buy, say 30 years ago, compared to today. A Chinese car? No way! But now, many products which are quite popular, including most of the Apple mobile devices, are manufactured in China. So are a lot of our appliances, regardless of what brand they are. All of this industrial output is a consequence of a change in Chinese policy over two decades ago, when Chinese leaders decided that the country should be able to compete, from a manufacturing perspective, in global markets. Today, you can see the results of those decisions. What’s next? It looks like the government is about to dramatically liberalize financial policies that will certainly see shockwaves across the UK in the years to come.
Feeding the Housing Boom
Property agents are well aware that, especially in London, some of the most desirable sections of town have been the intense focus of investors and buyers from overseas. As a result, prices have skyrocketed in many of the fancier neighborhoods. The trend is being closely monitored by the Bank of England, who is rightfully concerned that another housing bubble is in the making. They certainly do not want to repeat what happened six years ago, especially if on the scale of what happened in the United States, which was disastrous. While Chinese financial markets are not going to transform themselves overnight, if the current ruling party’s intentions are being properly interpreted, we could see drastic changes over the next 5 to 10 years. But the housing market is not the only one which could be affected.
China’s Financial Policies Putting London on the Map
There is a very good reason why George Osborne travelled to China recently. In the event that China’s currency, called the renminbi, should become convertible, which is to say it could be exchanged for any other currency (which it is not at the moment), the Prime Minister wants to make sure that London becomes the international hub for trading this currency. In many ways, this makes perfect sense. The Chinese elite are currently already sending their children to the UK to be educated: they obviously have an affinity for what we have to offer. If this chain of events were to fall into place, financial institutions in London, as well as other parts of the UK, could see a huge swell in activity and profits.
Preparing for the Future
Naturally, you can’t be too concerned right now about what China’s financial policies will be. What you can do, however, is start having a sound investment plan of your own. The easiest way to accomplish this is to open a GE Capital savings account, which provides you many different options. You are sure to find one that exactly meets your needs, allowing you to invest in your own future.