Facts about China

by on November 20, 2008 at 6:38 am in Current Affairs | Permalink

Exports constitute nearly 40 percent of China’s GDP–far too high a figure. (By comparison, in the U.S., exports account for about 10 percent of GDP most years.) And the global financial slowdown is already taking a terrible toll. Some 10,000 factories in southern China’s Pearl River Delta area had closed by the summer of 2008. Gordon Chang, a leading China analyst, estimates that 20,000 more will shutter by the end of this year. In the third quarter of 2008, Beijing also reported its fifth consecutive quarterly drop in growth,
and several private research firms expect a sharper slowdown next year.
Additionally, unemployment is skyrocketing; in Wenzhou, one of the main
exporting cities, about 20 percent of workers have lost their jobs, Reuters recently reported.

Here is more.  By the way, here is an article on China’s retreat from environmental concerns.

I thank Clifton Chadwick for the pointer.

A Tykhyy November 20, 2008 at 7:51 am

It seems that if there is to be a Great Depression-like Great Depression, with sky-high unemployment and lines for food handouts, it will be in China…

Ironman November 20, 2008 at 9:08 am

Meanwhile, the growth rates of trade between both the U.S. and China confirms that both economies are slowing dramatically. Not mentioned in the post, but if you go by slopes in the overall trends, it would appear that China’s economy is now slowing much faster than that of the United States.

Rob November 20, 2008 at 12:29 pm

Scares me a bit, in Canada our exports value is roughly a third of our GDP – although net exports is a fair bit lower, closer to 3%.

Jeff Singer November 20, 2008 at 1:17 pm

The author of the paragraph quoted above says the following:

“(By comparison, in the U.S., exports account for about 10 percent of GDP most years.)”

But when I go to the link, the “Economist” article doesn’t say anything about U.S. exports. It is all about what is the ‘real’ share of China’s GDP that can be accounted for by exports. All of the analysis applies to China, not the U.S.

better not Gordon November 20, 2008 at 4:25 pm

Gordon Chang is a leading China analyst? What a laughing stock he is. He was the guy that, back around 2001, wrote this sensational book “The Coming Collapse of China”, which predicted China would soon fall apart (in 5 or 10 years). The reason: bad loans in Chinese banks. Now that scenario didn’t happen, and he has been very quiet for a few years, he is now banking on another scenario.

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