Adam Roseman's Commentary on China Surpassing Japan as the World's Second Largest Economy in 2Q 2010 Featured in August 24th, 2010 Edition of ARC China Weekly Newsletter


SHANGHAI, CHINA--(Marketwire - August 24, 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, recent investment transactions in China's current news, and transactions in the Middle East, Europe, and the United States. 

Roseman's foreword focuses on China overtaking Japan to become the world's second-largest economy last quarter with figures showing Japan's economy valued at about $1.28 trillion, slightly below China's $1.33 trillion. China is expected to surpass Japan's economy throughout the rest of 2010.

While Japan's economy is more mature and its population quickly aging, China is in the middle of urbanization and is far from developed, meaning it has a lot more room to grow. Just five years ago, China's gross domestic product was about $2.3 trillion, nearly half of Japan's economy.

Even as the United States and the European Union are struggling to grow in the wake of the worst economic crisis in decades, China has continued to climb up the economic league tables through investing heavily in infrastructure and backing a $586 billion stimulus plan. Although China's economy is still only one-third the size of the economy in the U.S., China passed the United States to become the world's largest auto market last year. China also passed Germany to become the world's biggest exporter. The country is also currently the world's largest buyer of iron ore and copper and the second-biggest importer of crude oil.

China's future influence on the global economy will continue to increase and the country's "double-digit" expansion is expected to contribute a third of global growth in 2010. Investment firms with a strong focus on investing in companies levered to China's continued growth in domestic consumption will also benefit from China's rising status as an economic superpower.

The newsletter can be found online at http://www.arcchina.cn/this-week-in-china/volume-75/.

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. 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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