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Does all this matter much to foreign direct investors? Sure, if China's economy is imploding. Otherwise, no. Investors rely on hard data culled from their own market research and sales figures. "Growth does matter, but whether it's 5%, 6%, 7%, or 8% doesn't," says Joseph M. Johnson, senior vice-president of Unilever Best Foods in Shanghai. "Even if there were a year or two when growth was way off, that's not enough to prevent multinationals from being here or coming into the market." In other words, as long as China's middle class, now 100 million strong, keeps growing--and no one questions that it is--there will be new buyers for Unilever's shampoos, detergents, and ice cream.

This guy nails it. It also IMO reveals how Wall Street views China...

#1. Middle Class in China=about $200 USD a month...

While thats nothing big for us... thats good for them... and corporations who sell $2 bottles of shampoo...

Making $ in China all depends on what you sell...and those products are limited...

There is a market in China, but people don't understand it at all... and generally they overstate the H#ll out of it...

It also depends on which 'multinationals' are there and in what form? Is your GE can opener made in China? How many of the made in China versions are actually sold in China?

There is a lot to say about that quote.

The problem with China is not their 'middle class'... heck, most of them either work for US corporations, were educated in the US, Canada, Europe, Australia, etc...work for Taiwanese companies... and they have a lot to lose by causing trouble. They want reform and are generally very well mannered (with exceptions).

The middle class is the only hope for the whole country!

Generally speaking they have accepted commonly accepted international norms... AND THAT is why they are middle class! They don't want to kick some Taiwan @ss, they want to get some Taiwan $$$ and a job.

Its the communist @ss^%#@s and uneducated peasants that we need to worry about... half the time those are both one in the same...