How the global economic crisis could bring down the Chinese government

[FarLeftRage]

The New Republic

Crash and Burn
by Joshua Kurlantzick
How the global economic crisis could bring down the Chinese government
Post Date Tuesday, November 18, 2008


Normally, the Pearl River Delta, a manufacturing hub in southern China, whirs with the sound of commerce. Alongside massive new highways, clusters of factories churn out toys, electronics, and other consumer products for the world; in Pearl River cities like Guangzhou, nouveau riche businesspeople cut deals at swank hotels.

But in recent months, the Delta has started to seem more like Allentown, circa 1980s. As the global financial crisis hits Western consumers' wallets, orders for the Delta's products have dried up. And angry factory workers, many owed back pay, have taken to the streets. In one recent incident, some 300 suppliers and creditors "descended on the River Dragon complex looting warehouses in the hopes of salvaging something," As USA Today reported.


This unrest is likely to spiral. As the Chinese economy sours for the first time in years, the government this week announced a $586 billion stimulus package. But in some ways, much more is at stake: While, in the U.S., a financial failure would simply mean another dent in George W. Bush's reputation, in China it could mean the breakdown of the entire political order.


More at: http://www.tnr.com/politics/story.html?id=8beb6bb5-123c-4d73-9a49-2aa1e82922a8


Everything and I mean EVERTHING dumbya touches turns to sh*t...

[Tandalayo_Scheisskopf]

1. "But in recent months, the Delta has started to seem more like Allentown, circa 1980s."

Been to Allentown lately? They are plucky there, but it still has a long way to go. This economy is not helping, one little bit.

[FarLeftRage]

2. I've never been there...

I wonder if the author of this article has.

And this economy is not helping anyone... as far as I know.

[Tandalayo_Scheisskopf]

6. They recently had quite a spate...

Of armed bank robberies in that area. Which is indicative of something.

[FarLeftRage]

8. I'm sure they have...

And things are likely to get worse, before they get better.

[Mike 03]

3. It's possible but unlikely

There is still an enormous consumer base in China.

There are markets for their exports other than the USA.

The one way they could destroy themselves is environmentally. They've begun to realize this, I think, and are shutting down coal plants by the hundreds.

But, as an investor, it is probably wise to avoid China at this time. Even so, they can take care of themselves. They are not dummies.

[WCGreen]

5. All the markets around the world are stagnant....

[Mike 03]

7. Yup. This appears to be a synchronous global contraction.

But that doesn't mean there won't be some exceptions. Also, it will be interesting to watch and see which nations have positive growth during the next five quarters. I'm not ruling China out.

[Berry Cool]

9. Actually, what I understand is quite the opposite.

They've become so frantic about the economy that now they're looking the other way on corporate polluters even more than before.

[Mike 03]

4. Also, the collapse of China would be very, very bad news to us,

because they, like Japan, hold so much of our paper right now. They are still trying hard to pretend it is worth something. We owe them quite a lot.