Shanghaiist: Yet another toy factory goes bust; Shenzhen government picks up the tab for lost wages

NannyState

Tue, 28 Oct 2008 11:24:38 +0800

China's inefficient factories will have to close. That's what recessions and slowdowns force you to do. Raising productivity is China's main task while the rest of us try to figure out what kind of economy we have left.

taihanasie

Fri, 24 Oct 2008 22:49:31 +0800

You are, of course, right, BBC. The US is in deep shit right now, and Europe is not far behind. Although I think that everyone is in for a hard time.

BBC1

Fri, 24 Oct 2008 22:43:01 +0800

Compared to the financial holocaust in the US and Europe, toy factory shutdowns are small potatoes. LOL! Yay China, Fcuk the lamb shaslik!

eastman

Fri, 24 Oct 2008 20:34:02 +0800

taihanasie darling, when you say 'gdp figures in china are inflated because cadres at the lower levels want promotions', you are not smart enough to know that china central government is tightenning and cooling down the economic development for already one year. do you think a cadre who want to be promoted with his merit will be as laughable as you to INFLATE the gdp figures now instead of to DEFLATE it? if you still insist on the chance to fake gdp, i have no problem keeping you in dark. but if gregory mankiw's book doesnt help, try 'rich dad poor dad', it's just right one for you and much easier to read.

taihanasie

Fri, 24 Oct 2008 13:24:31 +0800

As you know quite well, one person can't change GDP, but he CAN change how it is reported. Duh!

taihanasie

Fri, 24 Oct 2008 13:22:12 +0800

Eastman, honey. As I said, the inflation of GDP figures in China and how it is done is not a secret, and has been reported on for years by Chinese and Westerners alike in countless publications... especially around three years ago when China was primarily concerned with economic overheating instead of inflation followed by slow growth. You can't just make something into the "laughable mistake" you wish it were just because you call it one.

eastman

Thu, 23 Oct 2008 17:42:47 +0800

--"GDP figures in China are inflated because cadres at the lower levels want promotions"? sure lower level cadres want promotion but not thru inflating gdp figures, since they cannot. if you knew a little bit what parts gdp was consist of, you'd not think that way. try read mr. gregory mankiw's book 'essentials of economics' could be a good and easy start for not making that laughable and simple mistake.

taihanasie

Thu, 23 Oct 2008 16:12:46 +0800

Actually, the problem is much larger than it is being made to seem at the moment and has been going on longer than many suspect. As little as a week ago, China trade figures indicated a surplus in US$ terms that showed hardly any slowdown. One Hong Kong economic columnist had the simple, yet ingenious idea of measuring China's surplusses over time in RMB terms. Taking into account exchange rates, China's manufacturing sector has been slowing for months. Another article I saw just a day later indicated that around 50 percent of the companies in the toy industry have gone under or are expected to go under. Then.... surprise surprise! Official Chinese figures showed the economy had slowed to 9 percent GDP. It is no secret that GDP figures in China are inflated because cadres at the lower levels want promotions. The government actually chooses figures based on what they think might be correct, but not so low as people would be alarmed. So the GDP numbers are usually between what the cadres are reporting and what the reality is.

nanheyangrouchuan

Thu, 23 Oct 2008 15:14:06 +0800

This is a big problem per The Economist: http://www.economist.com/business/displaystory.cfm?story_id=12380989