Inside Asian Culture

Despite the great strides that China has undertaken to become an economic superpower, there are some investors who remain unsure if China is the "real deal" because of the country's history of socialism and authoritarian government. However, the Chinese system known as "socialism with Chinese characteristics" has become more capitalistic than almost all other major economies. With no capital gains tax, property tax or tax on real estate investment gains, China is actually more investor and capital friendly than the U.S.

Festivities for China's National Day were kicked off with a bang -- the Chinese government went all out to make this year's celebration of the 60th anniversary of the People's Republic of China the biggest and best ever seen in China. And they received overwhelming support, with over one million volunteering to help out with security and the parade. The Chinese have a lot to celebrate -- both their hard-won peace from civil war 60 years ago, as well as the modernization of China today.

With expendable income expanding nicely in recent years, more and more Chinese are taking vacations to some of the hottest tourist destinations in China and all of Asia. This likely includes visiting the terra cotta museum in Xian, touring the capital city of Beijing and gambling in Macau. And like many Americans, the Chinese are turning to the Internet to book their flights, hotels and rental cars. China's leading online travel services company has been the biggest beneficiary of this trend -- shares are up nearly 80% year to date.

For more than 2,000 years, China has celebrated the life and patriotic efforts of Qu Yuan during the Dragon Boat Festival. This celebration is held throughout the Greater China Region as boat races are launched in China, Taiwan and Hong Kong. And it has been a popular tradition in the region since the Warring States period, or third century BC.

Over the weekend, it was announced that India's Congress Party had won the country's political election with Manmohan Singh becoming the new Prime Minister. Indian's and investors alike cheered this recent development, pushing India's Sensex index up 17% in trading on last Monday. While this is a positive development for India, I remain hesitant that this equals brighter skies ahead for Asia's third-largest economy.

There's no denying that the financial crisis wreaked havoc on China's exporting business. As a result, the country has focused it's economic growth efforts inward, rather than outward. And part of this plan includes developing central China, which has lagged behind in economic growth compared to China's coastal cities.