
Follow us on TWITTER: twitter.com Like us on FACEBOOK: www.facebook.com On January 3, in New Year's message to business, Premier Wen Jiabao warned: "The first quarter can be quite difficult." Many of the so-called "economic contribution" phenomena, which the Chinese Communist Party (CCP) is dependent on, have begun to vanish. The CCP's safety net begins to fracture too. Last October, Prof. Lang Xianping at the Chinese University of Hong Kong, talked in Shenyang about the economy. He pointed out during his speech, that China's economy is virtually bankrupt, but this cannot go in the official books. Prof. Lang said that China's Purchasing Manager Index shows, that China has entered recession as early as July 2011. However, all CCP's policies are such that they can cover up the real ailing situation. Prof. Lang pointed out during his speech in Shenyang, that 70% of China's GDP is from infrastructure development. However, these are not cost-effective. Plus, the real pillar of China's economy, manufacturing, is now in a crisis too. He pointed out that many industries in Jiangsu and Zhejiang, have only 30% to 60% operating rate. As the industry is sluggish, China's manufacturing industry is facing closures and strikes. Since 2008, in Dongguan, the Pearl River Delta, Wenzhou, Yangtze River Delta, etc., many businesses have closed down. In Wenzhou alone, from April to October, 2010, over 80 heavily indebted businessmen fled or committed suicides. Chen Zhifei, economics' professor <b>...</b>
New
Year's
message
to
business
Premier
Wen
Jiabao
Chinese
Communist
Party
(CCP)
economic
contribution
manufacturing
Jiangsu
Zhejiang
Pearl
River
Delta
Wenzhou
Yangtze
businessmen
fled
committed
suicides
York
City