Potential huge economic crisis exists behind China’s showcase type economic development. (Getty Images)
According to the BBC Chinese network, China’s exports are shrinking because of fewer orders. The recession in North America and Europe is causing China’s export industry to face a difficult situation.
Besides fewer orders, the export industry is concentrated along the coast of China and is also facing rising labor costs.
Many toy manufactures in Guangdong Province were forced to close down between January and July, before the West’s crisis. Early last month, two major toy manufactures listed on the Hong Kong Stock Exchange closed down. Seven-thousand workers lost their jobs.
Statistics from China’s Ministry of Commerce show that China’s export growth in the first quarters of this year were slower compared to the same period last year, dropping from 27.1 percent to 22.3 percent.
The newly released statistics further reveal that China’s economic growth will fall into the single-digit range this year. This will be the first time that China’s economic growth has slid into the single-digits in the past six years.
Official figures show that GDP growth slowed to 9 percent in the third quarter, off 3 percent from last year. This is the lowest level in more than five years.
Employment Concerns
Unemployment has become the greatest concern of the Chinese people.
Many college students and white-collar employees are now worried about job security. Over 1 million people took the Chinese government’s civil service examinations this year, 200,000 more than last year.
College students were the largest source of new civil service personnel in the past, but many white-collar applicants also applied this year.
