The world economy may experience some setbacks in the future, and that would affect China because the country is more international now. With its cooling economy, China needs to pay more attention to avoid building up debt. In the past few years China has built up more debt than it ever had in the previous 30 years.
There have already been some companies that have defaulted on their debts, and there may be more. But if China comes out of this cooling period, it is likely to see rapid growth in its economy.
Britain was dominant in the 19th century, and then it was replaced by the US in the 20th century. In my view, the 21st century will belong to China.
It's likely that more and more Chinese consumers will spend their money overseas as they become richer and some Chinese firms will speed up their process of overseas investment. The increased purchasing power from China will continue to change the world in the future, similar to the way that Britain and the US did when they were rising.
I encourage my daughters to speak Chinese and learn about Asia, because I want them to prepare for the 21st century. That is why I have moved my whole family from the US to live in Asia.
India may never become an economy as important or as strong as China. As for Japan, under its current economic policy the country has been printing money, but a depreciating currency will not support the sound development of the real economy in the long run.
Jim Rogers is a smart investor who co-founded the Quantum Fund with George Soros in 1973. By 1983 the fund gained more than 4000 percent.
