2011-12-06

Social mood in China continues on downward slope

Labor unrest increasing among China's workers
Reports of recent strikes at factories and other major employers, especially in southern China, reflect increasing pressure on Chinese manufacturers already grappling with surging costs for labor and materials. The country's manufacturing contracted in November for the first time in nearly three years, according to a survey released Thursday.


Predictions of an economic collapse in China are in vogue. This article talks about Western predictions of economic collapse in China, but ignores Chinese predictions! In fact, the Chinese are also turning negative, as I've covered on this blog. I've followed the bears due to their unique views and because they often have similar predictions to those of deflationists in the West. I will cover Liu Junluo's latest blogs soon; he is extremely pessimistic, saying if Italy or Spain default, the A-share market will fall 1000 points, or about 40% from current levels and below 2008 lows.

Chinese leaders fret about unrest as economy sours
"Faced with the negative impact of the market economy, we still have not established a complete social management system," Zhou said. "How to establish a social management with Chinese characteristics to suit the socialistic market economic system in China is the most pressing task we face today."

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