This is the eBook version of the printed book.

This Element is an excerpt from Buying at the Point of Maximum Pessimism: Six Value Investing Trends from China to Oil to Agriculture (9780137038497), by Scott Phillips. Available in print and digital formats.

Seizing the opportunity: why you need to be investing in China and other emerging markets.

Competition leads to innovation, innovation leads to progress, and progress leads to wealth. Heavy competition, innovation, and progress are the key ingredients of the Chinese economic miracle, not cheap labor. The truth is that China’s adoption of freer market principles unleashed a wave of competition: the country is teeming with entrepreneurs.