How is China holding in this tough economy?
How are businesses affected?
How are businesses affected?
Mr Hex Vision
Favorite Answer
Well Chinese growth rate had dropped a lot. This put millions of Chinese people out of jobs and closed down thousands of small businesses and hundreds of factories. Lucky, x-mas is just around the corner and the major factories will be making millions of toys for x-mas, but this year the completion with other giants like India will be stronger.
However we will wait to see what happens.The USA growth so far this year has shot from -6% to +3.5. China growth depends on exports mostly and if the USA where to go bust then China would as well. If the sign of the USA has bounced back then it can only be a good sign because after the EU the USA is the highest importer of Chinese goods, so any deals with Pres. Obama and the Chinese are in China's interests and that includes bailing them out. However, the global crisis may have changed the way people buy stuff now and in the way that it maybe better to buy goods from their own countries as it seems their is yet another China product scandal heading this way....
Anonymous
EB nailed it. To which i might upload: the US owing China funds isn't in any way like a guy or woman owing a financial corporation or credit card company funds. China won't be able to repossess our motor vehicle or have third party debt creditors call at time for dinner. China's purely potential of "harassing" us could be to, as EB says, sell all their US Treasury bonds unexpectedly, in hopes of disrupting the bond industry. there is purely no accessible reason for them to try this -- if it harm everyone, it would harm China far worse than everyone else. each and every Wall highway dealer is conscious you do no longer sell off all your inventory at as quickly as, or perhaps extensive chunks of it at as quickly as -- you will purely harm your individual proceeds by utilising flooding the industry. And the chinese language financial device relies upon on US as a customer so lots better than we count on low value plastic products from China; for sure one in all those strange "attack" might end commerce kin. it would purely make no experience. And what no one needs to confess is that if China DID do this, we've a protection -- the US Federal Reserve ought to truly purchase one and all of those bonds flooding the industry to soak up the ask your self, and then cope with the subject from there. finally, save issues in perspective. The chinese language artwork very frustrating to make funds, and then they turn around and supply *US* the money. In return, we provide them products of paper. Who comes out forward in THAT deal?
HowJ
no doubt "Made in China" has made many products cheap and affordable around the world... Cheap labors in China can do the rest of the world really good.
Looking at the Chinese economy, for example let's look at the Shanghai composite index:
http://www.google.com/finance?q=SHA:000001
It went from a high of 6000 to a low of below 2000, about 33% of its highest point.
let's look at Dow Jones:
http://www.google.com/finance?q=INDEXDJX:.DJI
from a high of 14,000 to a low of 6600, about 47% from its highest point.
So yeah, Chinese economy follows the world, rising faster, and dropping faster. Because the rest of the world are the consumers of the Chinese products... when their economy is not doing well, they ain't gonna spend money on these Made in China stuff.
So despite how many people claim how good the Chinese economy is becoming, they still need to rely on the consumers for their economic success.
kevin8or
"made in china"
does that mean anything to you? USA owes china billions or even trillions of ca$h. china has thousands of factories responsible for manufacturing goods that other countries use. one of the reasons top countries like US rely on them to make these things is because china doesn't really care about going green, they dump toxic products from the goods they make right in their ocean. Business wise, they remain alive and well, ofcourse.
I'm just happy the USA finally stepped out of the recession.
Barricade
My co-worker went there and said that it was aggressive and booming. No matter how bad the economy get and though they get affected, they have no choice but to keep growing. He said over here is quiet.