By Daily Crux Editor Sean Goldsmith:

In a recent interview, legendary investor Jim Rogers said China has been building up its reserves for a rainy day, and now it's spending that cash on infrastructure improvements that will make the country more competitive when the world comes out of the current slump.

As we previously pointed out, Rogers isn't currently buying Chinese stocks - the market has doubled in the past nine months, and he thinks it's expensive - but he's also not selling. Also, Chinese real estate has almost recovered to pre-bubble prices.

Instead, Rogers says the best way to play China is to buy commodities... "China has to buy commodities. They have no choice. They cannot cheat you. They will pay you on time. They will take you to dinner. They will do everything, because they have to buy commodities."

Rogers says he owns all of the commodities, and he would currently buy every commodity, "especially the grains."

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