---
title: "China Meme, Good and Bad"
url: https://independentstockanalysis.com/china-meme-good-bad/
description: "Independent Stock Analysis considers the industrialization of China a major investment theme. Materials and metals, of course, are how we play it…"
published: 2012-06-25
updated: 2012-06-25
---

# China Meme, Good and Bad

Published 2012-06-25

Posted on

by

J.J. Butler

*Independent Stock Analysis* considers the industrialization of China a major investment theme. Materials and metals, of course, are how we play it: Dramatic copper demand growth expected from China, India, Brazil at [Mineweb](http://www.mineweb.com/mineweb/view/mineweb/en/page36?oid=153495&sn=Detail&pid=102055).

Rising China is a Misnomer…and Other Actionable Takeaways from [Frank Holmes](http://www.usfunds.com/investor-resources/frank-talk/rising-china-is-a-misnomerand-other-actionable-takeways/).

Chinese investing stateside: [Fortune](http://finance.fortune.cnn.com/2012/06/20/toledo-china-real-estate/?iid=HP_River). Understanding China’s one child policy: [Economist](http://www.economist.com/node/21557369).

Investors must always be vigilant against their biases. China’s economic fortune sure has been taking a beating in the financial media. Thus we consider the bear case:

Dr. Copper says watch out below at [Sober Look](http://soberlook.com/2012/06/dr-copper-says-watch-out-below.html). And more at [Kimble Charting Solutions](http://blog.kimblechartingsolutions.com/wp-content/uploads/2012/06/coppercrxheadandshouldersjune18.gif). A technical look at FCX: [ChessNwine](http://ibankcoin.com/chessnwine/2012/06/25/copper-not-quite-indicating-a-bear-but-close-to-it/).

We know from observing the industrialization of that nations iron ore is the first material to peak in usage intensity. Iron ore has been a whipping boy lately, being priced at 6 month lows. Yet, Iron ore hits 5-week high as China continues to forge steel near record pace at [Mining.](http://www.mining.com/2012/06/21/iron-ore-hits-5-week-high-as-china-continues-to-forge-steel-near-record-pace/) You can be sure they know this too, but Rio Tinto takes next steps in its iron ore development plans at [Rio Tinto](http://www.riotinto.com/media/18435_media_releases_22117.asp).

Chinese Data Mask Depth of Slowdown, Executives Say from the [New York Times](http://www.nytimes.com/2012/06/23/business/global/chinese-data-said-to-be-manipulated-understating-its-slowdown.html?_r=2&adxnnl=1&smid=tw-share&adxnnlx=1340450787-BD/90PiIN24oNcSPahUH2w).

The Macroeconomics of Chinese Kleptocracy at [Bronte Capital](http://brontecapital.blogspot.com.au/2012/06/macroeconomics-of-chinese-kleptocracy.html) and a [follow up](http://brontecapital.blogspot.com/2012/06/follow-up-to-china-kleptocracy-post.html).

Vale and Goldcorp by [John Tumazos](http://www.veryindependentresearch.com/Letters/2012/June%202012/june_18,_2012.htm).