http://www.economist.com/finance/displayStory.cfm?story_id=12758009&source=features_box1
Recently, China has published their trade figures and they don't look good. Exports have dropped, and it is China that has powered world trade and global growth. In fact, "During the 1990s China’s exports grew at an annual average of 12.9%; from 2000 to 2006 that growth nearly doubled to 21.1% each year." and now, suddenly, all of this growth has just stopped. The World Bank's expectations for China are much lower than hoped for while most analysts expect far worse with no growth in exports at all in 2009.
Furthermore, along with these terrible tidings, Chinese workers are growing restless with labor disputes rising rapidly and to make matters worse, an estimated 130 million have moved from the countrysides into the city looking for jobs at factories tha make exports.
Some were counting on China to prop up the world as many rich places fall into recession but with these statistics, that does not seem likely. The world's economy is doing worse and worse and with Obama not even in office yet, I can already tell he is going to have it rough. After all, the entire world is going under and a lot is expected from him. Honestly, what can he do really to help the world. I wish him the best of luck because honestly, he is going to need it.
http://www.economist.com/displayStory.cfm?story_id=12381871
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8 comments:
We all knew that when the economy hit a bump in the road like it has now, it would not simply effect that one place, but many others that relied on them for exports and whatnot. Obama's going to have a lot in store for him when he finally gets into office, but luckily he's not going to be blindsided with it. He has time to prepare for it before he gets into office and once in office, he can prove what he's made of. We also have to remember that he's not going to be alone. He has plenty of people who can give him opinions and such that will lead him to, hopefully, fix this problem.
~Kimiya Bahmanyar
Oh god, just imagine if China needed money and asked the US to return all of their 2.5 trillion dollars of debt.....
I think that once the inner workings of China's economy, in thier own country, have started to balance out they will start seeing more output. But as I know coming from a family who owns factories, some companies in China are moving to places like Vietnam. China itself wants more high-tech industries rather then some of the lower end factories opening up. Though I do not have hard evidence to prove it, being part of the kind of business gives me an idea of where it is going. To seriously get the ball rolling on the economy, a big issue is the flattening of the dollar. The deal with China is, many contracts are signed months or even some year or two in advance. With the prices of transportation fluctating it ruins the profits China gets. And also China's government during the high priced oil, bought and kept much oil in hopes of the price going up. That seems to have backfired and hurt its government a little.
I think it is our recession that is putting China in this situation because they are one of the biggest foreign trades we have going pointing out the obvious. It is sad to here all this because not only is it hard on our country but others are suffering entirely as well. I heard on the news that factory workers at one company i cant recall were recently fired and the workers although told to leave, have still stayed and come to work on time everyday just to work without pay. Its hard to understand what these people really go through until you are put in the position yourself. Alot of us are coming to realize this with the tuition for college being outragously expensive and how competitive it is to get in anywhere. Its also easy to blame one person aka George Bush for what america is going through but i think a recession was bound to happen sooner or later and hopefully with Obama in office things will start to change and hopefully immediately.
Almost like what Kim said, think about it this way, Who is doing good? When an economic downfall hits a powerful country it has something (not as jurastic) like the domino effect. Look around the web and you'll see that not a lot of countries have prosperous economie right now, especially the ones we heavily trade with like CHINA and Mexico. China may have had a little slip but that doesnt mean their economy wont be right back on top in a bit.
Well, with our current economic crisis it is no doubt that China's economy will fall as well. And when that happens, surely the workers will start an uproar while the countryside will definetely move to cities where their new occupation would rather be paid more than their usual rate. The whole world is turning upside down, its just a matter of time. And to fix this currrent problem, may reside with our own country with our new upcoming president, Barrack Obama.
And dof course, any new presidents will face high expectation from his people and other foreign countries, its just that it may be a slight more difficult due to our current economy that we are now facing.
China was unexpected for me. I assumed China would be doing okay, but China doing poorly? This is a surprise for me. I would get restless with labor too. Hopefully there is no worldwide depression.
Yeah, good luck Obama. While I think that this view of the world might be a little pessimistic, there are certainly a lot of problems and it's going to require more than just Obama to fix them. I hope the rest of the world wakes up at some point, because relying on America is just plain stupid. As far as I can tell, we've caused more problems than we have ever fixed.
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