Dancing With The Enemy: Can China Be A Viable Alternative For U.S. Investors?

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This paper examines the impact of Global Financial Crisis on the United States of America vs. China. Specifically, the authors contend that despite the relatively higher risks related to investing in China, U.S. individuals would benefit from increased investment in this market due to its strong economic indicators and growth opportunities. Results suggest that during the post-Global Financial Crisis period, despite the inherent higher risk, China may provide a viable alternative for U.S. investors mainly due to the higher growth rate of the Chinese economy, lower unemployment rate, higher consumer confidence, better-adapted regulation & corporate governance reform, and China's position as an emerging market.