China has had recurring periods of greatness and recurring periods of disaster and now is the time to be in China, Jim Rogers, chairman of Rogers Holdings, told CNBC as China celebrates 60 years of communist rule.
The country's economy has been opening up gradually since 1989, and it will probably float the yuan pretty soon, Rogers added.
"China saved up huge reserves for a rainy day, now it's raining and they're spending those reserves," Rogers said.
"You contrast that with the UK or the US for instance which has no reserves, has nothing but huge debts and they're borrowing, or printing, or taxing to spend their money… I'd rather be in the East than in the West."
China will spend the stimulus money on durable goods but also in upgrading its infrastructure and its schools, providing jobs, Rogers said.
The US insisted in 1994 that China peg the yuan to the dollar, but now letting it float freely is just a matter of time, he added.
"I would have thought they would have let it float by now, it's in China's interest, it's in the world's interest for them to do it. Whether they do it this year or 2011, but it's coming. They are opening it up more and more each quarter, so it's coming," Rogers said.
The best way to invest in China is to buy Chinese companies, rather than buying companies outside China that sell there, because they depend on their own markets, according to Rogers.
Water, infrastructure and agriculture are the sectors to invest in China, he said.
"I'm not sure I would buy right now, given that the market doubled in the last 9 or 10 months, but over the next few years, it's going to be great," he said, but refused to name specific companies.
"I don't have a top three (of companies), I own like 10 or 12 in water treatment alone."
- Video: Rogers on China's Future