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Recession in U.S. is bringing job cuts, unrest to China

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Pale Blue Dot Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Dec-21-08 11:26 AM
Original message
Recession in U.S. is bringing job cuts, unrest to China
Source: Austin American Statesman

Buoyed by the ample credit of American consumers, the total value of Chinese exports to the United States grew ninefold between 1995 and 2007, when it reached $233 billion, according to Chinese government data.

But China's rapid growth has disproportionately benefited its wealthiest people, leaving most Chinese unable to afford the products its factories export and making China particularly vulnerable to the U.S. recession.

Production drops, effects ripple

As exports have fallen, economists have issued a string of warnings that China's economic growth will slow. Last month, the World Bank cut its 2009 growth forecast for China from 9.2 percent to 7.5 percent.

The economic problems and growing social tensions are most apparent in export-reliant cities such as Dongguan.

Once a patchwork of rice paddies and villages, Dongguan grew into a key manufacturing hub. At the end of 2007, more than 90 percent of 15,000 foreign-invested factories in the city made goods for export and 80 percent of its 10 million people were migrant laborers, said Deng Yupeng, an economist at Dongguan Technology University.

Since the beginning of this year, declining demand in the United States and Europe, as well as a string of safety recalls of Chinese-made products, have pushed more than 1,000 factories in Dongguan into bankruptcy and some 2 million people have left the city, Deng said.

Read more: http://www.statesman.com/business/content/business/stories/other/12/21/1221chinaecon.html
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BeFree Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Dec-21-08 11:36 AM
Response to Original message
1. Now you see why?
China keeps lending us money.

And man, I'd hate to live downstream from that new city.
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bemildred Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Dec-21-08 11:37 AM
Response to Original message
2. Yeah, I think there is a large probability of the shit hitting the fan in China.
If it was just the US that was in the economic crapper, they could go elsewhere, but this "downturn" seems to be global.
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RUMMYisFROSTED Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Dec-21-08 12:20 PM
Response to Original message
3. "...disproportionately benefited its wealthiest people..."
:wow:



Feudalism rocks!
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Phred42 Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Dec-21-08 12:48 PM
Response to Original message
4. Phuck em
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JCMach1 Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Dec-21-08 12:54 PM
Response to Original message
5. Guess that means the average Chinese will never make it to the Penis Restaurant
for the signature Penis platter...

...A visit to the Guolizhuang Restaurant in Beijing is not for the faint-hearted. Here the menu consists almost entirely of penis and testicle dishes -- made from the private parts of deer, snakes, yaks, horses, seals and ducks, among others.

The platters have names like "The Essence of the Golden Buddha," "Phoenix Rising," "Jasmine Flowers with 1,000 Layers" and "Look for the Treasure in the Desert Sand." Are such flowery names meant to prevent guests from prematurely running off? After all, the "jasmine flowers" are made of layers of thinly sliced donkey penis, and the "treasure in the desert" is actually sheep gonads on a bed of curry.

"Chinese eat anything with four legs, except tables. And everything that flies, except airplanes," says Zhaoran, quoting a well-known Chinese saying. This may be true, but even in China a penis restaurant is unusual. The Guolizhuang restaurant opened two years ago on the aptly-named Dongsishitiao Street... http://www.spiegel.de/international/zeitgeist/0,1518,549788,00.html

But seriously, China's wage disparity from top to bottom boggles the mind and will eventually produce a revolution if not addressed... Maybe it's time!
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Deja Q Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Dec-21-08 01:33 PM
Response to Reply #5
7. Only you would have the balls to say that...
:rofl:

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HillbillyBob Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Dec-21-08 05:48 PM
Response to Reply #5
9. That wage disparity thing may lead to revolts in wider areas
than just China, could see it here too. I just saw on CNN headline a short bit that Detroit is in such dire straits that it is more like post Katrina NOLA.
That is what we get for letting the corps run loose, its the robber baron meme all over again, and allowing them to spread the thomas freidman economic model around like a disease.
As to that restaurant eewwww. I grew up in rural WV and I had relatives that lived through the Depression they would eat almost all of anything they shot, Opossum, Muskrat, Squirrel, Deer, Beaver no canines or feline though. My grandfathers second wife would save the testicles, kidneys(tastes like piss). Oh I will eat liver, sometimes, but no brains, testicles or anything like that.
By the way...bbq opossum is about the nastiest thing I have ever tasted..and all I did was one taste..i went to bed hungry that night.
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maseman Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Dec-21-08 11:55 PM
Response to Reply #5
15. Come on...
How BIG could a snake's penis be...really?
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JCMach1 Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-23-08 12:41 AM
Response to Reply #15
17. Not big, but SHOCKINGLY scaley
Edited on Tue Dec-23-08 12:41 AM by JCMach1
!

And tastes like chicken...
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Odin2005 Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Dec-21-08 01:14 PM
Response to Original message
6. Sounds like the Chinese Communist Party is losing that "Mandate of Heaven" thingy.
Edited on Sun Dec-21-08 01:15 PM by Odin2005
"May you love in interesting times..."
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roamer65 Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Dec-21-08 01:57 PM
Response to Original message
8. I am betting the Chinese will begin massive military spending shortly.
Edited on Sun Dec-21-08 01:59 PM by roamer65
They will put most of those factories back to work building up a massive military force. Hitler did it to pull Germany out of the Great Depression and we all know where that led...
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depakid Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Dec-21-08 06:46 PM
Response to Reply #8
11. Thus far, they're concentrating on infrastructure spending
- China will spend 5 trillion yuan ($730.6 billion) until 2020 to add 41,000 km (25,480 miles) to its already big rail network, state media said, as the government tries to boost domestic demand and ease strains on a jammed system.
The latest edition of Outlook Weekly, published by Xinhua news agency, cited Deputy Railway Minister Lu Dongfu as saying the new railways would help promote economic growth, ease transport bottlenecks and provide at least six million jobs.

<snip>

New railways would be built linking major cities, and others would be dedicated to transporting coal in inland provinces and regions including Inner Mongolia and Shaanxi, the report said.

Last month China announced a sweeping 4 trillion yuan economic stimulus package of spending over the next two years, with a large portion of the funds targeting infrastructure projects such as roads and railways.
Beijing wants to boost domestic demand to help offset a slowdown in key export markets in Europe and North America, hoping to generate enough jobs to keep a lid on labour unrest and social instability.

http://www.guardian.co.uk/business/feedarticle/8166603
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StudsT Donating Member (310 posts) Send PM | Profile | Ignore Sun Dec-21-08 06:38 PM
Response to Original message
10. The World Will Soon Look Like Greece
6 hours ago
ATHENS (AFP) — Street violence raged into a third week in Athens as protests sparked by the fatal shooting of a teenager fused with political tension hours before a Greek parliament budget vote Sunday.

Clashes between youths and police extended deep into the night after hundreds of people gathered late Saturday in Athens' Exarchia district, at the site of the December 6 shooting of 15-year-old Alexis Grigoropoulos.

Protesters occupying the Athens Polytechnic university hurled firebombs and rocks at police who responded with tear gas, while police cars, a government building and banks were targeted in various parts of the capital, the port city of Piraeus and the island of Crete.

Late Sunday, around 100 youths briefly took over an Orthodox church in the northern city of Thessaloniki, remaining inside the church for two hours before dispersing peacefully. The church was undamaged, local police sources said.

It was the first time a church has been targeted in the protests.

It followed an incident on Saturday when around 30 youths occupied the Olympion theatre in the city.

Saturday's unrest in Athens flared after youths gathered on the spot where Grigoropoulos died after being shot by police, and where a makeshift shrine has since emerged.
Flowers and messages of support adorn the scene along with mock street signs bearing Grigoropoulos's name.

The officer who shot the teenager claims he fired into the air whilst under attack by youths, and has attributed the death to a bullet ricochet.
Investigators scoured the crime scene again early on Sunday in search for further clues, accompanied by lawyers for the Grigoropoulos family, the police officer and his colleague who is also implicated in the murder.

"The crime scene search will help lead to conclusions but will not change our position," said lawyer Dimitris Tsovolas who represented the victim.

The unrest later subsided as thousands of Athenians filled the city centre where protestors shared the streets in bizarre scenes this past week with throngs of Christmas shoppers.
The embattled right-wing government faced a fresh hurdle at midnight Sunday, when the budget -- staunchly opposed by unions, and likely to trigger more protests if adopted -- was to be put to a vote.

The budget makes provision for a two-percent deficit and 2.7-percent growth -- down from a current 3.1 percent.
Prime Minister Costas Karamanlis has argued that the unrest is complicating efforts to reduce Greece's national debt, which this year stands at 93.9 percent of GDP, one of the highest in Europe.
The conservative leader said last week that Greece expects to pay about 12 billion euros (16 billion dollars) in 2009 to service its debt, amounting to over 19 percent of its revenue and nearly five percent of GDP.

The depth of anti-government sentiment witnessed over the past fortnight has also cost the government dearly in opinion polls.
Socialist leader George Papandreou has overtaken Karamanlis for the first time as the preferred choice for prime minister, pollsters Public Issue said in a survey published in the Kathimerini newspaper on Sunday.

Karamanlis -- whose government has a one-seat majority in parliament -- has repeatedly shrugged off opposition calls to resign, announcing financial measures to support the business and tourism sectors hard-hit by the unrest.

Hundreds of shops and banks in Athens and elsewhere have sustained damage in street violence which dealt a severe blow to the Christmas shopping season.

source...
http://www.google.com/hostednews/afp/article/ALeqM5jVyUZFrodFkf6jrZS_UNmbZDrD1g

StudsT
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sarcasmo Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Dec-21-08 08:14 PM
Response to Original message
12. I bet they riot before we do. Sometimes I think the only thing that would upset the populace
would be if American Idol were canceled.
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OhioChick Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Dec-21-08 08:24 PM
Response to Reply #12
13. You're right.
Isn't it pathetic that more people here vote for American Idol contestants than a Presidential Election?
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ohio2007 Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Dec-21-08 09:34 PM
Response to Original message
14. they should unionize....oh wait...
that isn't allowed
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alfredo Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Dec-22-08 12:04 AM
Response to Original message
16. We live in interesting times.
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