China´s economy entered a downward trend in February. And while a lower economic growth might still be alright, the real danger lies in a weaker labor market and pressure on social stability, says business analyst Shaun Rein in the Voice of America.
The Voice of America:
“So starting in February the economy has been on a major downward trend, much more so than many economists realize,” said Shaun Rein, head of China Market Research. “And the decline is really focused on unemployment, not so much GDP growth, which I think is really an ok number. But what you’re seeing in the factory area is some of the smaller and weaker factories having to squeeze margins.”
Rein added China’s labor markets are weakening in both urban and rural areas among blue and white collar workers, which could threaten social stability. Although many of those participating in the labor protests have been detained, few have been criminally prosecuted.
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