China's December exports, imports fall sharply

[Pale Blue Dot]

Source: MSNBC

BEIJING - China's trade slump worsened in December as exports fell at their fastest rate in a decade, the government said Tuesday, aggravating a decline that has fueled a wave of layoffs and fears of unrest.

December exports fell 2.8 percent from the same month a year earlier, after a 2.2 percent decline in November, the Chinese customs agency said. China's global trade surplus for 2008 rose 12.7 percent over 2007 to a record $295.5 billion, possibly worsening tensions with the government of U.S. President-elect Barack Obama.

The visiting president of the U.S. Chamber of Commerce appealed to Beijing to resist pressure to respond to the downturn by trying to block imports.

The slump in global sales has forced thousands of Chinese factories to close. Communist leaders worry about unrest as laid-off migrants stream back to their hometowns from coastal manufacturing regions without jobs or money. Labor protests have occurred in some areas. The government is pressing companies to avoid more job cuts.

"Starting in October, our orders dropped sharply. We basically stopped production after October," said Sun Bin, general manager of Huang Gang Hengsheng Clothing Import & Export Co. in the central province of Hubei. The company sells clothing to the United States, Europe and the Middle East.

"We don't dare to produce, because the more clothes we make, the more we will lose," Sun said.

Read more: http://www.msnbc.msn.com/id/28631994/

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This may seem like good news on the surface, but it's really not. Who do you think is lending us the money to fund the massive debt required for our "stimulus" plan? What do you think will happen when they can't or won't lend anymore?

[Javaman]

1. The Chinese are already pulling in the reigns. this is why it's so important for Obama

to invest in US manufacturing.