MASS LAYOFFS as Economy Collapses in ...

MASS LAYOFFS as Economy Collapses in China!

Posted in the China Forum

The CCP is DYING

Port Moody, Canada

#1 Jul 26, 2013
China shutters factories to fight price-cutting

More than 1,400 companies cut excess capacity that has led to financial trouble for manufacturers

The Associated Press Posted: Jul 26, 2013 8:31 AM ET Last Updated: Jul 26, 2013 8:30 AM ET

More than 1,400 Chinese factories have been ordered to cut production in an attempt to stave off a race to the bottom for prices on certain goods.(Reuters) China's government has ordered companies to close factories in 19 industries where overproduction has led to price-cutting wars, affirming its determination to push ahead with a painful economic restructuring despite slowing growth.

The industry ministry issued orders late Thursday to more than 1,400 companies to cut excess capacity that has led to financial trouble for manufacturers. The affected industries include steel, cement, copper and glass. It requires some companies to close outright.

Communist leaders are trying to reduce reliance on investment and trade. But a slowdown that pushed China's economic growth to a two-decade low of 7.5 per cent in the latest quarter prompted suggestions they might have to reverse course and stimulate the economy with more investment to reduce the threat of job losses and unrest.

"This detailed list shows the government is serious in its efforts to restructure the economy and is prepared to tolerate the necessary pain," said Nomura economist Zhiwei Zhang in a report. "This reinforces our view that aggressive policy stimulus is unlikely in 2012 and that growth should trend down."

....
The CCP is DYING

Port Moody, Canada

#2 Jul 26, 2013
...
Manufacturing slowdown
An investment boom and government subsidies to industries such as solar panel manufacturing prompted producers to expand rapidly until supply exceeded demand. Companies have been forced to slash prices, often to below production cost.

The government's overall measure of prices charged by producers has fallen for the past 16 months, threatening a growing number with financial ruin. A major solar panel maker, Suntech, was forced into bankruptcy this year.

Forecasters have repeatedly trimmed their growth outlook for China amid a drumbeat of data showing weakening growth in retail sales, factory output and other economic segments.

This month, the International Monetary Fund last week cut its 2013 forecast to 7.8 per cent from an 8.1 per cent outlook announced just three months earlier. The Fund's chief economist, Olivier Blanchard, said China was the country at the greatest risk of a "large decrease in growth."

Private sector forecasters say growth could dip below 7 per cent in coming quarters.

The country's top economic official, Premier Li Keqiang, was quoted Tuesday by Chinese newspapers affirming the Communist Party's growth target of 7.5 per cent this year. He said the "bottom line" for growth was 7 per cent, prompting hopes among investors for at least a limited stimulus.

Also Tuesday, the Cabinet announced a tax cut for small businesses, indicating Beijing is trying to target specific parts of the economy without a costly, across-the-board stimulus.

Thursday's order by the Ministry of Industry and Information Technology said it aims to eliminate "backward production capacity," indicating it also is meant to improve efficiency in energy and resource use.

Other industries targeted include coke, calcium carbide, aluminum, smelting of lead and zinc, paper, alcohol, monosodium glutamate, citric acid, leather, printing and dyeing, chemical fiber and batteries.

The production glut is in part a lingering cost of the multibillion-dollar stimulus that helped China rebound quickly from the 2008 global crisis.

Beijing pumped money into the economy with a wave of spending, much of it financed by state banks, on building new subways, bridges and other public works. Higher revenues for state-owned construction companies and suppliers of steel and other building materials propped up inefficient producers and encouraged some to expand.

In the cement industry, Thursday's order calls on companies to shut down facilities with annual production capacity of more than 92 million tons. Steel producers were ordered to eliminate 7 million tons of production capacity.
The CCP is DYING

Port Moody, Canada

#3 Jul 26, 2013
So sad.

MILLIONS face unemployment and poverty in China due to Chinese Communist Party mismanagement, corruption, and the "special needs" of the CCP dictatorshit!

Poor China!
The CCP is DYING

Port Moody, Canada

#4 Aug 7, 2013
This year's University graduates in CCP China are all working as street-vendors selling fruit, porn DVDs, and plastic junk!

No jobs!
The CCP is DYING

Surrey, Canada

#5 Aug 8, 2013
The silver lining is that the Chinese Communist Party regime is too weak and illegitimate to survive even a mild recession.
ASIAN LATIN AFRO MID EAST

United States

#7 Aug 8, 2013
The US/West in a great depression ans on steroids - Austerity... and while China is in recession phase with plans to get out of it.

Note Not a commie or fascist war monger like you! JAJAJJAAJAJa.
Andrez Lopez

El Paso, TX

#8 Aug 8, 2013
ASIAN LATIN AFRO MID EAST wrote:
The US/West in a great depression ans on steroids - Austerity... and while China is in recession phase with plans to get out of it.
Note Not a commie or fascist war monger like you! JAJAJJAAJAJa.
Mirotard's posts are not worth your time discussing.
The CCP is DYING

Port Moody, Canada

#9 Aug 8, 2013
Yes, "Atheist Andrez", you Chinese Communist Party lackeys are all supposed to be hiding in the toilet from all issues of importance.

The "CCP Mass Cowardice Maneuver" is still in effect, so get with the program and be a good CCP coward!

HA HA HA HA HA HA HA HA HA!
CCP is HATED and DYING

Port Moody, Canada

#10 Aug 13, 2013
ASIAN LATIN AFRO MID EAST wrote:
The US/West in a great depression ans on steroids - Austerity... and while China is in recession phase with plans to get out of it.
Note Not a commie or fascist war monger like you! JAJAJJAAJAJa.
So you are saying China's economy is CONTRACTING and the country is ALREADY in RECESSION?

That means ALL OF THE CHINESE MEDIA AND CCP REGIME SPOKESMONKEYS ARE CERTAINLY LYING!!!!!

Thanks for the COMFESSION, "Comrade"!

Since: Jun 12

Location hidden

#11 Aug 13, 2013
ASIAN LATIN AFRO MID EAST wrote:
The US/West in a great depression ans on steroids - Austerity... and while China is in recession phase with plans to get out of it.
Note Not a commie or fascist war monger like you! JAJAJJAAJAJa.
They have revaluated their GDP growth figures 3times this year, exports are falling as well as household demand. Did China plan that too? I thought the plan was to become a sustainable economy not totally wreck it. Feel sorry for Xi, all he can do is too late and too little. If instead he freed the RMB up, allowed government assets to be invest into modern financial intruments and privatize the Banking sector, everything would work out less desasterously.

Oh the US is no longer in recession dummy and most of the EU is moving out of the downturn.
The CCP is DYING

Surrey, Canada

#12 Aug 14, 2013
It's all a fake economy anyways...

Check this out:

HOUSE OF CARDS
How China added $1 trillion to its economy by fudging data
By Tim Fernholz @timfernholz August 13, 2013


China’s economy could be $1 trillion smaller than it says.
+
Christopher Balding, a professor at Peking University, lays out the case in a new working paper that finds some very strange patterns in China’s official statistics, which have long been viewed with skepticism. He believes the government manipulated housing price data between 2000 and 2011 to produce lower inflation results. Balding makes four key observations:
+
1. Why doesn’t the housing price data reflect China’s massive migration? In the last two decades, the country experienced a major migration from the rural interior to coastal cities. But the country’s official statistics show rural home prices growing three times as fast as urban home prices between 2000 and 2011. Balding is skeptical that home prices in urban areas grew so much more slowly, especially when private measures show housing prices in Chinese cities increasing much faster.
+
2. Or its massive economic growth? Overall, China says private housing prices grew 8% between 2000 and 2011, at a time when its economy never grew less than 8% in a year, sometimes growing more than 10%. With reports of a real-estate boom, it’s implausible that inflation would run at 2.43%—and real housing prices would fall by almost 20%, as the data imply. Consider this: In 2012, the admittedly housing-heavy US economy grew 2.8%, and urban home prices increased nearly 3%.
+
3. Why is China over-weighting city citizens? When China aggregates how housing prices affect its citizens’ cost of living, it assumes 80% of them live in the city and 20% live in the country—every single year. Over the same time period, China’s urban population has grown from 36.2% to 51.3%. The 80-20 weighting allows officials to play down cost of living increases by emphasizing the supposedly low-cost-growth urban results. At the same time, it assumes its citizens spend more on “education and cultural articles” and almost as much on “clothes” as they do on housing.
+
4. How can China have so few renters? This a country where 230 million people, about 17% of the population, travel away from home to work each year. Why are only 12% of the population classified as renters? Balding thinks it’s because China’s statisticians want to use the lowest increases in home prices for the most people; home rental prices have grown 50% faster than homeownership.
+
All told, when Balding re-adjusts the data to take into account what he calls more accurate assumptions about where Chinese citizens are living and how much their homes cost, he sees an extra 1% of inflation each year. Over the decade in question, that eats up about $1 trillion in real Chinese growth. That should give anyone invested in China’s economy, figuratively or financially, a moment of pause.
+
Or, if you don’t believe him, prepare yourself to believe this fact from China’s national statisticians: From 2003 to 2011, the only consumer prices that rose in China were for food, which made up 99% of the official increase in consumer prices.
CCP is for LOSERS

Port Moody, Canada

#14 Aug 15, 2013
" if you don’t believe him, prepare yourself to believe this fact from China’s national statisticians: From 2003 to 2011, the only consumer prices that rose in China were for food, which made up 99% of the official increase in consumer prices."

Gee! OBVIOUS LIES from CCP China's "Officials"!

HA HA HA HA HA HA HA HA HA!

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