Not even China has been immune to the global financial crisis. Double-digit growth for now seems a thing of the past. Exports and new construction, the lifeblood of the Chinese economy, have slowed dramatically.

Still, China has amassed huge capital reserves and stands ready to invest even as others cut back.
One investor is Sonny Wu, managing director of GSR Ventures, an investor in early-stage Chinese technology companies.
In January, GSR closed a new $383 million fund.
Investment targets for the fund include Internet and wireless firms, semiconductors and technology that helps save energy. In all, GSR claims roughly $700 million under management.
Wu spoke with IBD about the impact of the slowdown on China's competitive position.
IBD: What impact has the global financial crisis had on Chinese investing?
Wu: It's creating new opportunities. You can build the next-generation companies in China in industries that have been strong elsewhere. The financial crisis has accelerated the migration of certain vertical industries to China.
IBD: Which industries?
Wu: The auto industry, the alternative energy industry and TV.
IBD: Speaking of television, the U.S. hasn't been a major factor for years.
Wu: With the TV industry, it's from Japan and Korea to China.
IBD: So this crisis will help China and hurt other areas of the world?
Wu: Capital always flows to where there is productivity, efficiency and innovation -- where you can get better returns.
It's always a matter of the right division of labor. U.S. and European companies will have to find the means and the areas where they have a competitive advantage.
IBD: What are those areas?
Wu: I'll share with you a joke that's been going around. The U.S. used to be known, of course, for high-tech and computers. But the true comparative advantage the U.S. has going forward is in agriculture.
IBD: That's a joke?
Wu: It's a joke, but it's true.
IBD: One area where there has been growing venture interest in the U.S. is in alternative energy, so-called green technology. Is this an area of interest for China as well?
Wu: There's global interest in new technology for energy. China will be one of the major markets for innovative energy technology.
IBD: China already has a lot of solar energy companies.
Wu: The Chinese solar companies can have manufacturing cost advantages.
But a lot of the energy innovation is still happening in the U.S. and Germany.
IBD: Is GSR interested in new energy solutions?
Wu: We are pushing semiconductor lighting. We want to replace the light bulb.
IBD: China has well-known environmental problems. Is there interest in China in young companies that provide environmental solutions?
Wu: Compared to Germany, the European Union and the U.S., China is behind in adopting some of the technologies and standards.
(Source: Investor’s Business Daily)