{"id":10842,"date":"2015-08-09T17:08:24","date_gmt":"2015-08-09T22:08:24","guid":{"rendered":"http:\/\/olduvai.ca\/?p=10842"},"modified":"2015-08-09T17:08:24","modified_gmt":"2015-08-09T22:08:24","slug":"chinas-hard-landing-suddenly-gets-a-lot-rougher","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=10842","title":{"rendered":"China\u2019s Hard Landing Suddenly Gets a Lot Rougher"},"content":{"rendered":"<h3 class=\"entry-title\"><a href=\"http:\/\/wolfstreet.com\/2015\/08\/09\/chinas-hard-landing-gets-rougher\/\" target=\"_blank\">China\u2019s Hard Landing Suddenly Gets a Lot Rougher<\/a><\/h3>\n<p>This has become a sign of the times: Foxconn, with 1.3 million employees the world\u2019s largest contract electronics manufacturer,\u00a0making gadgets\u00a0for Apple and many others,\u00a0and with mega-production facilities in China, inked a memorandum of understanding on Saturday under which it would invest $5 billion over the next five years\u00a0<em>in India!<\/em><\/p>\n<p>In part to alleviate the impact of soaring wages in China.<\/p>\n<p>Meanwhile in the city of Dongguan in China, workers at toy manufacturer Ever Force Toys &amp; Electronics were protesting angrily, demanding three months of unpaid wages. The company, which supplied Mattel, had shut down and told workers on August 3 that it was insolvent. The protests ended on Thursday; local officials offered to come up with some of the money owed these 700 folks, and police put down the labor unrest by force.<\/p>\n<p>These\u00a0manufacturing plant shutdowns and claims of unpaid wages are percolating through the Chinese economy. The\u00a0<a href=\"http:\/\/www.wsj.com\/articles\/china-toy-factory-workers-protest-over-unpaid-wages-1439015131\" target=\"_blank\"><u>Wall Street Journal<\/u><\/a>:<\/p>\n<blockquote><p>The number of labor protests and strikes tracked on the mainland by China Labour Bulletin, a Hong Kong-based watchdog, more than doubled in the April-June quarter from a year earlier, partly fueled by factory closures and wage arrears in the manufacturing sector. The group logged 568 strikes and worker protests in the second quarter, raising this year\u2019s tally to 1,218 incidents as of June, compared with 1,379 incidents recorded for all of last year.<\/p><\/blockquote>\n<p>The manufacturing sector is responsible for much of China\u2019s economic growth. It accounted for 31% of GDP, according to the World Bank. And a good part of this production is exported. But that plan has now been obviated by events.<\/p>\n<p><span class=\"Apple-style-span\">Exports plunged 8.3% in July from a year ago, disappointing once again the soothsayers surveyed by\u00a0<a href=\"http:\/\/www.reuters.com\/article\/2015\/08\/08\/us-china-economy-trade-iduskcn0qd03320150808\" target=\"_blank\"><u>Reuters<\/u><\/a>\u00a0that had predicted a 1% drop. Exports to Japan plunged 13%, to Europe 12.3%. And exports to the US, which is supposed to pull the world economy out of its mire, fell 1.3%. So far this year, in yuan terms, exports are down 0.9% from the same period last year. As important as manufacturing is to China, this debacle\u00a0is not exactly conducive to economic growth.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>China\u2019s Hard Landing Suddenly Gets a Lot Rougher This has become a sign of the times: Foxconn, with 1.3 million employees the world\u2019s largest contract electronics manufacturer,\u00a0making gadgets\u00a0for Apple and many others,\u00a0and with mega-production facilities in China, inked a memorandum of understanding on Saturday under which it would invest $5 billion over the next five [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[130,1784,353,2353,2520,452,2813,4254,4255,888],"class_list":["post-10842","post","type-post","status-publish","format-standard","hentry","category-economics","tag-china","tag-exports","tag-gdp","tag-hard-landing","tag-imports","tag-japan","tag-manufacturing","tag-wolf-richter","tag-wolfstreet","tag-world-bank"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10842","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10842"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10842\/revisions"}],"predecessor-version":[{"id":10843,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10842\/revisions\/10843"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10842"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10842"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10842"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}