weswelker#83

Financially troubled plants are being abandoned by the boss, leaving behind unpaid workers and debts.

Some owners deserting factories in China - Los Angeles Times

PatriotsReign

Up until now, the thoery "was" that the Chinese economy would not fail because it was not dependent upon the United States. Basically, there were people who believed it was an engine that would keep churning and reliant only upon their own citizens.

Another theory that went "Poof"!

sdaniels7114

The author kept referring to 'catching' the owners of these failed businesses. Sounds like China has different ideas about bankruptcy.

MrBigglesWorth

walmart actually did well this quarter so i guess they'll be buying from china.

but on the flip side i guess people aren't buying plasmas and computers and other needless junk

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Real World

I've heard lots of people go psssf when the point about the Chinese owning our money comes up, cuz so many say China is tied to our success. If we go, so does China. That's why people aren't afraid of China cashing in, and colapsing the dollar. They need the US economy to be strong.

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"The most difficult subjects can be explained to the most slow-witted man if he has not formed any idea of them already; but the simplest thing cannot be made clear to the most intelligent man if he is firmly persuaded that he knows already, without a shadow of doubt, what is laid before him."
Leo Tolstoy, 1897

Patjew

They need the US to a certain great extent, but as the "factory to the world" not all of China's eggs are tied up in the US. Many companies here operate completely independent of the US market. So far things seem to be slowing down in China, but not nearly as quickly as it seems to be slowing down back home.

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PatriotsReign

China is not 100% tied to the US economy, but even your "factory to the world" comment shows that they're in deep doo-doo as RW stated. As you know, we are just beginning a major worldwide deep recession that may turn into a worldwide DE-pression. So if the world isn't buying anything, China's gonna go down just like the rest of the world.

Did you read the link to the Time article? It sounded pretty bleak to me. Below are some highlights:

"Toy makers are among the hardest hit. More than 3,600 such factories have closed -- about half the industry's total, government figures show. Most were small operations, but last month Smart Union Group's three huge factories stopped production, leaving more than 8,700 workers jobless"

"Chinese exports remained brisk through September, except for a few categories such as apparel, which fell 3% in September from the same month in 2007. But many exporters aren't making a profit, and others are seeing shrinking orders or are starving for cash. Newspapers in Hong Kong, which is close to Guangdong, have been running virtually daily reports of the latest factory to falter."

"Government statistics show that 67,000 factories of various sizes were shuttered in China in the first half of the year, said Cao Jianhai, an industrial economics researcher at the Chinese Academy of Social Sciences. By year's end, he said, more than 100,000 plants will have closed."

As worldwide demand continues to diminish (and it will), China will be dragged to as well. In the new world economy, no country is self-sustaining.

weswelker#83

This is our China moment....but lucky , we don't look for the bosses...

Circuit City files for bankruptcy
http://www.engadget.com/2008/11/10/c...or-bankruptcy/