FTA Agreement and ARC Investment Partners

China’s first ever bilateral FTA with a Central American country.  Such agreements are always advantageous for foreign investors, such as Adam Roseman of ARC Investment Partners who has been investing in the region for many years.

According to an article in China Briefing it is hoped that this agreement will assist in “strengthen[ing] mutual trading ties and bring about significant increases in business opportunities.”  Parts of this agreement will provide the opportunity for more than 60 percent of the countries’ products “enter each other’s market duty-free immediately, and will allow tariffs to be removed from another 30 percent of products gradually in the next 5 to 15 years.”

The primary exports from China that will most benefit from this agreement will be: automobiles, chemical products, electrical appliances, fruits, leather, machines, and raw fur.

Big Chinese Investment Plans

According to a recent article in Bloomberg, Chinese venture Nissan Motor Company has plans to make a $7.8bn investment in the next four years “to gain market share as economic growth boosts demand in the world’s largest auto market.”

The goal of the Chinese motor company Dongfeng Motor Co. is to raise its yearly sales of vehicles to over 2.3m within the next five years.  Currently its sales figures are up to 1.3m but with the rise it is expected to enjoy from the number of dealerships in China of 1, 000, things are really looking up.

Indeed, such news like this is great for long-time foreign investors in China such as Adam Roseman of ARC Investment Partners.  Roseman has been making big investments in the country – a wise business decision given China’s attractive environment.

In addition, Carlos Ghosn, Nissan’s CEO, is “counting on growth in China to help make Nissan Japan’s most profitable carmaker for the first time since at least 1992, is aiming to boost its China market share to about 10 percent by 2015, from its current 6.2 percent.”   As well, Hong Kong-based analyst at Mitsubishi UFJ Asset Management, Ricon Xia pointed out how “the Chinese market will play a much more important role for Nissan in the future, as it has potential like no other.”