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China: No Longer an 'Emerging Economy'

Rob Lutts, founder and chief investment officer of Cabot Money Management, told CNBC’s “Squawk on the Street” that China is now an established economy.

“I think it’s a misnomer to call these ‘emerging economies,’ ” Lutts said. “China has arrived. It has a tremendous foundation for growth.”

Lutts said China has the workforce needed to move ahead.

“The capability of the entrepreneurs in those companies and the people’s commitment to growth is substantial,” he said. “They have a huge cost advantage, and developed nations around the world are working to set up manufacturing facilities in China. That’s not going to stop.”

Lutts said growth opportunities in China include education, property management, infrastructure, financial services, consumer spending, and advertising.

Lutts said he’s investing in the Hong Kong market.

“We think those shares are priced very reasonably,” Lutts said. “We’re getting growth of about 30% a year and maybe paying 20-to-25 times earnings. I think that’s reasonable. We would just call them fast-growing economies –- not emerging. China has arrived and China is going to keep growing at a very fast pace.”

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  • Carl Quintanilla is an Emmy-winning reporter and co-anchor of CNBC's "Squawk on the Street," broadcast live from the NYSE.

  • Simon Hobbs co-anchors the 10 a.m. hour of CNBC's "Squawk on the Street" live from the New York Stock Exchange.

  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

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  • Rick Santelli joined CNBC Business News as an on-air editor in 1999, reporting live from the floor of the Chicago Board of Trade.