The news from China last week shows that while the economy is growing, there are some growth factors that could have far-reaching impacts. With GDP growth currently above government targets, further infrastructure spending is unlikely. This will affect Alcoa (AA), which is already suffering from low aluminum prices, and Freeport-McMoRan (FCX 2.40%), which recently learned that its Grasberg mine will be temporarily halted. Finally, as Chinese policy regarding rare earths could change as a result of these data, Molycorp (NYSE: MCP) may be affected as well.
In the following video, Fool.com contributor Doug Ehrman discusses the data and the impact it could have on each of these companies.
