WEBVTT

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China's development over
the past 20 years has

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been remarkable.

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In a relatively narrow span
of time, nearly one-quarter

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of China's population left their
rural homes to take advantage

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of growing economic
opportunities in the cities.

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During this same period, the
share of the population living

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in extreme poverty fell
from 40% to less than 1%.

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We believe this is a result
of Beijing's long-term plan

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to create an increasingly
affluent population,

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supported by a services and
consumption-oriented economy.

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Yet, this explosion in
growth has led to concerns

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over China's increasing global
prominence-and has fueled recent

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trade disputes.

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By many measures, China is
still a developing economy,

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and has a ways to go to
achieve its goal of a level

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of prosperity that is
comparable with that

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of more advanced economies.

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In fact—assuming that the
current pace of economic growth

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in China evens out—we
estimate that the size

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of the Chinese economy could
match that of the U.S. by 2036,

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but because China's
population is expected

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to remain nearly four times
the size of the U.S. population

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for the foreseeable future,

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China's per capita
wealth could continue

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to lag the U.S. Even
so, as China's economy

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and global influence advance
over the next few years,

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we anticipate long-term
growth opportunities

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as Beijing begins
easing restrictions

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and encouraging greater
use of its equity

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and debt markets by
foreign investors.

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In our view, investors
who wish to benefit

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from China's economic expansion
should carefully consider a

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diversified allocation to
emerging market assets.

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To learn more about how
these dramatic changes

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in China's economy could
affect global investors,

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download our Wells Fargo
Investment Institute special

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report: China's Place
in the World.