Adam Roseman's Commentary on China's Shift Towards a Domestic Demand Driven Economy Featured in the July 20th, 2010 Edition of ARC China Weekly Newsletter


SHANGHAI, CHINA--(Marketwire - July 20, 2010) -  ARC China released the latest edition of its newsletter ARC China Weekly today. The publication includes a commentary from ARC China Founder Adam Roseman as well as articles covering topics of general interest with a focus on consumer and retail, alternative energy, and recent investment transactions in China's current news, and a newly added section covering transactions in the Middle East, Europe, and the United States. 

Roseman's foreword analyzes the recent release by China's National Bureau of Statistics (NBS) of the macro-economic data for the first half of 2010 and the indications that China is shifting closer towards an economy primarily driven by domestic demand. The economy expanded by 11.1% year-on-year to hit RMB 17.28 trillion ($2.55 trillion) in the first half compared to GDP growth of 7.4% during the same period last year.

While exports rose 35.2% to $705.09 billion, imports were up 52.7% to $649.79 billion. As a result, the trade surplus shrank by 42.5% from a year earlier to $55.3 billion in 1H 2010. A sharp decline in the trade surplus during 1H 2010 indicates that China, the world's fastest-growing major economy, has significantly lifted domestic demand to drive the double-digit economic growth seen thus far in 2010.

The International Monetary Fund announced this month that it has raised its China growth forecast for 2010 from 10 percent to 10.5 percent. Given that domestic consumption accounts for only a third of the country's GDP, China has not even scratched the surface of the domestic market potential at its fingertips. 

The newsletter can be found online at http://www.arcchina.cn/this-week-in-china/volume-70/.

About ARC China

ARC China is an investment firm focused on investments in entrepreneur-owned small and medium sized enterprises located in Tier II and Tier III Chinese cities. We seek to create value for our investors and companies we invest in by applying our professional experience and relationships to help companies upgrade their management teams, technology, systems, and business processes. Our team of experienced investment professionals and in-house due diligence analysts deploy a proven and unique on-the-ground activist investment strategy of making value-oriented highly involved, exit-driven equity investments in a diversified portfolio of domestic consumption-focused high-growth Chinese businesses. We also provide various financial advisory services, for both inbound and outbound China transactions. For more information, please visit http://www.arcchina.cn.

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Adam Roseman
ARC China
182 Chang Shu Road
Xu Hui District
Shanghai 200031, P.R. China
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