I was in China last weekend and all the questions I got were on the recession.
Factories are closing as export sales are drying up. One redundancy here will probably snowball into 20 in China.
To overcome the risk, the government is investing in major infrastructure.
With 10 million people a year leaving the countryside to live and work in the cities and 8 million or so leaving university high growth rates are needed to keep everyone busy.
If the government fail to ensure everyone is gainfully occupied then social stability is at risk. China has no welfare state or health service.
If China goes titup then we will be in real trouble.
So go out and buy a made in China telly or something and save the world.
