A Textile Capital of China Is Hobbled by a Downturn Gone Global

The world’s largest economy that once thrived on consumption took a sudden turn to thriftiness. But a global slowdown in spending has hurt factory towns in China that once packed US closets at low prices. Thousands of workers have lost jobs and two out of every three textile and apparel factories in China could go out of business, reports David Barboza for the New York Times. “Experts say that what happens in cities like Shaoxing could be a barometer of China’s trading might, and a window into its social conditions.” The effects of the global economic downturn in China mirrors those in the US: Problems of one industry quickly eliminate the stream of revenues for direct suppliers like dye and chemical operations or businesses that indirectly serve industry prosperity like auto or real estate dealers. Prices and wages could adjust as producer China and consumer US continue to work on extreme imbalances. – YaleGlobal

A Textile Capital of China Is Hobbled by a Downturn Gone Global

David Barboza
Tuesday, March 10, 2009

Click here for the article on The New York Times.

Xie Qing contributed research in Shanghai.

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