According to the Chinese premier Wen Jiabao the effects of the worldwide financial crisis on China is worse than they expected. It’s the first time the Chinese premier gives his own personal opinion about the crisis.
Compared to other countries, China’s grow rate is still high but their economical expansion is slowed down.
Not so long ago, China announced that they would slow down their economy to protect it against global recession.
In Southern China for example multiple factories had to close which caused unemployment for a lot of migrated workers.
China’s biggest fear is that the social problems caused by the cool down will lead to instability and unrest.
To offset the results of the measurements the Chinese Central Bank has declared they will cut in the interest rates to boost their economy and a 10 point stimulus plan has to persuade Chinese consumers to spend more.
In my opinion the Chinese government did well by closing the factories and thereby avoiding much worse to happen. Now the government has taken actions to stimulate the economy again those unemployed workers will soon get back to work again. If the government shouldn’t have intervened on time it could have ended in a social massacre.
http://news.bbc.co.uk/2/hi/asia-pacific/7727237.stm
No comments:
Post a Comment