|
Violent unrest rocks China as crisis hits
Bankruptcies, unemployment and social unrest are spreading more widely in China than officially reported, according to independent research that paints an ominous picture for the world economy. The global economic crisis has scythed through exports and set off dozens of protests that are never mentioned by the state media.While troubling for the Chinese government, this should strengthen the argument of Premier Wen Jiabao, who will say on a visit to London this week that his country faces enormous problems and cannot let its currency rise in response to American demands. The new US Treasury secretary, Timothy Geithner, has alarmed Beijing and raised fears of a trade war by stating that China manipulates the yuan to promote exports. However, a growing number of economists say the unrest proves that it is not the exchange rate but years of sweatshop wages and income inequality in China that have distorted global competition and stifled domestic demand. The influential Far Eastern Economic Review headlined its latest issue The coming crack-up of the China Model. Posted by: Nimble Spemble 2009-02-02 |
| http://www.rantburg.com/poparticle.php?ID=261398 |