China, you too?!China, you too?!Current eventCurrent event

Lauren LeeLauren Lee

What’s Happening to What’s Happening to China’s Economy?China’s Economy?

China's sharp economic slowdown is set China's sharp economic slowdown is set to cause more labor unrest amid factory to cause more labor unrest amid factory closures and mass layoffs triggered by closures and mass layoffs triggered by the global financial crisis, a government the global financial crisis, a government minister and economists have warned.minister and economists have warned.

What’s Happening with What’s Happening with Trade?Trade?

Trade figures for November reported Wednesday by the China Daily newspaper Trade figures for November reported Wednesday by the China Daily newspaper showed the showed the first monthly declinefirst monthly decline in Chinese exports in in Chinese exports in seven years.seven years.

Exports experienced a one month decline of 10.4 percent, with imports down Exports experienced a one month decline of 10.4 percent, with imports down 19.5 percent, the paper said, citing the General Administration of Customs.19.5 percent, the paper said, citing the General Administration of Customs.

Overall, exports are down 2.2 percent for the year, the first time that number has Overall, exports are down 2.2 percent for the year, the first time that number has declined since 2001, when U.S. demand slumped slightly after the tech bubble declined since 2001, when U.S. demand slumped slightly after the tech bubble burst.burst.

Job Loss? No!Job Loss? No!

Yin Weimin, minister of Yin Weimin, minister of human resources and human resources and social security, last month social security, last month described China's job described China's job outlook as "grim" -- and outlook as "grim" -- and said the situation was likely said the situation was likely to worsen until an economic to worsen until an economic stimulus package kicked in stimulus package kicked in next year.next year.

Fears over job losses have Fears over job losses have triggered several outbursts triggered several outbursts of unrest in recent weeks.of unrest in recent weeks.

Why are riots Why are riots happening?happening?

About 2,000 people rioted in the About 2,000 people rioted in the impoverished northwestern impoverished northwestern province of Gansu last month over province of Gansu last month over plans to move Longnan's city plans to move Longnan's city government offices, which were government offices, which were damaged in the May 12 Sichuan damaged in the May 12 Sichuan earthquake, to a nearby county.earthquake, to a nearby county.

Residents, fearing the change Residents, fearing the change would reduce their property values would reduce their property values and threaten their livelihoods, and threaten their livelihoods, clashed with police and looted clashed with police and looted government offices, according to government offices, according to the Gansu Daily.the Gansu Daily.

Enough CompetitionEnough Competition

Two days later, several hundred taxi drivers went on strike in Chongqing, in Two days later, several hundred taxi drivers went on strike in Chongqing, in southwestern China, after the government said it planned to put more cabs southwestern China, after the government said it planned to put more cabs on the district's roads, thereby increasing competition, the newspaper said.on the district's roads, thereby increasing competition, the newspaper said.

GRIM FUTUREGRIM FUTURE

Zhuang Jian, senior economist with the Asian Development Bank's China Zhuang Jian, senior economist with the Asian Development Bank's China Resident Mission, told the newspaper that he expected the grim situation to Resident Mission, told the newspaper that he expected the grim situation to persist.persist.

"It means the financial crisis is not only weakening the economies of the United "It means the financial crisis is not only weakening the economies of the United States and the European Union, but also weighing on China's economy."States and the European Union, but also weighing on China's economy."

Yin said labor unrest caused by the slowdown was the government's main Yin said labor unrest caused by the slowdown was the government's main concern. He noted that some businesses, mainly smaller ones, have been forced concern. He noted that some businesses, mainly smaller ones, have been forced to close or suspend production in recent months.to close or suspend production in recent months.

StimulusStimulus

The government's stimulus The government's stimulus package, unveiled in early package, unveiled in early November, will pump $585 November, will pump $585 billion into rebuilding billion into rebuilding communities destroyed by communities destroyed by May's earthquake in Sichuan May's earthquake in Sichuan province, constructing province, constructing railways, housing, airports and railways, housing, airports and highways, and funding other highways, and funding other projects.projects.

What dangers to What dangers to manufacturing?manufacturing?

China's manufacturing sector, China's manufacturing sector, which produced 14 percent of which produced 14 percent of the clothing, toys and footwear the clothing, toys and footwear imported into the United States imported into the United States last year, has decelerated last year, has decelerated rapidly, pulled down by rapidly, pulled down by numerous of factors.numerous of factors.

Firstly, the global economic Firstly, the global economic slowdown and the subsequent slowdown and the subsequent drop in consumer spending has drop in consumer spending has stymied demand for stymied demand for discretionary goods made in discretionary goods made in China.China.

BankruptBankrupt

Secondly, Chinese manufacturers are battling rising labor and material costs at Secondly, Chinese manufacturers are battling rising labor and material costs at the same time that the yuan's rising value versus the dollar is making Chinese the same time that the yuan's rising value versus the dollar is making Chinese exports to the United States and elsewhere more expensive.exports to the United States and elsewhere more expensive.

Because of these challenges, more than 65,000 Chinese factories have gone Because of these challenges, more than 65,000 Chinese factories have gone bankrupt this year, said Lan Hailin, professor of business strategy with the South bankrupt this year, said Lan Hailin, professor of business strategy with the South China University of Technology in Guangzhou, China.China University of Technology in Guangzhou, China.

And as overseas orders continue to shrink, he said the number of bankruptcies And as overseas orders continue to shrink, he said the number of bankruptcies would keep rising.would keep rising.

Related to?Related to?

The whole world is practically having The whole world is practically having hard times economicallyhard times economically

Global financial crisisGlobal financial crisis

It has become the trend. dominoIt has become the trend. domino

China, as well, has stopped in China, as well, has stopped in development and started its down falldevelopment and started its down fall

How do I feel?How do I feel?

I am greatly shockedI am greatly shocked

scared that economy is worsening so scared that economy is worsening so quicklyquickly

worried for china’s developmentworried for china’s development

worried about the neighboring country, worried about the neighboring country, KoreaKorea

When will the global FinanciaL crisis When will the global FinanciaL crisis stop?stop?