Tuesday, October 28, 2008

China faces getting rich less quickly


In China the business is not so good as it has been during the past two years. The reason of this development is the global slowdown. The demand of toys, that are all made in China, declined. Many toy companies in China went bankrupt.
But the global slowdown is not the only reason why the demand of toys from the West declined. Last year, there were new safety regulations added to costs and wages went up.
All this contributed to the decline of toys. Global slowdown is the biggest contributor. Western people have less money to spend, so they buy less toys. Toy companies are not the only victims, other industries are suffering.
All this leads also to a fall of the stock market and house prices. The rich people in China see their profit decline. Despite all this, many people in China are not afraid. Many of them live already in poverty and can’t lose much.
So the economical recession is not only a problem that effects the Western economy, but also the Asian economy. But China has still its advantages and can still keep its strong position on the market despite all the companies that went bankrupt. The country will never go broke, but the rich people will not get richer, our get fast rich. They will have to do more effort and make their companies stronger and solid. I still believe that the country can become the new market leader, the new USA.

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