Late last year, as investors fretted over the spiraling economy, the Chinese government stepped in to change the world when it announced a massive infrastructure investment plan that aims to keep the populous country growing. Suppliers of building materials and a whole range of commodities are expected to benefit by continued consumption in China as the $586 billion is doled out over the next two years.
Then, as 2008 came to a close, China stepped up again to dangle more billion dollar carrots to companies around the world -- though this time in a less direct way. Capping a long-awaited decision that forced a new level of patience in the industry, the Chinese telecommunications regulatory body finally issued permits for its three main telecom carriers to provide more advanced, high-speed wireless services. The new offerings are expected to spur $41 billion in equipment orders to build out new networks.
Every major telecom equipment and technology provider in the world -- from Alcatel-Lucent to Motorola
Now, China Mobile
Over the next few months, investors will find out whether the lion's share of the infrastructure build-out will be awarded to international players like Nokia
Regardless of where dollars specifically fall in the build-out, the move heralds a new wave of growth in the global telecom market, particularly if the Chinese economy can weather the current glut and keep its growing middle class chugging along.
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Fool contributor Dave Mock bats a ball of string around now and again just for kicks, but he stays clear of catnip. He owns no shares of Motorola, Alcatel-Lucent and Qualcomm. Nokia is an Inside Value pick. The Fool's disclosure policy is approved for underwater use up to 10 meters in depth.