Latest News:  
Beijing   Overcast/Moderate rain    9 / 12 ℃  City Forecast

English>>China Business

Woes leave legacy we can be thankful for

By Zhou Feng (China Daily)

13:40, October 29, 2012

If ever you wanted proof that blessings can come in the guise of misfortune, then surely this is it.

Since China joined the World Trade Organization in late 2001, its trade has grown at more than 20 percent a year. That boom helped China to replace Germany as the world's largest exporter in 2009, and in all likelihood to become the world's largest trader by the end of this year.

But Chinese exporters and manufacturers have suffered two bouts of serious economic slowdown over the past 12 years.

The first coincided with the global financial crisis in 2008 and 2009, the world's worst financial meltdown since the Great Depression of the 1930s. China's exports experienced their largest setback as international orders drained away.

The drop in Chinese overseas shipments was not only sudden, but also deep and prolonged.

Exports fell 2.2 percent year-on-year in November 2008, after having risen 19.2 percent the previous month. The declines continued for more than a year, and growth returned in December 2009.

The wounds are still raw: Factories in the country's two major manufacturing powerhouses, the Pearl River Delta and the Yangtze River Delta, pulled down their shutters; migrant workers packed up and returned to their farmlands, and wage cuts became the order of the day.

For many Chinese exporters and workers it would have been a new experience: losing confidence, albeit briefly, in the country's economy.

But one result of these hefty export losses was that businesses began to realize that just as there can be economic sunshine, there can also be economic rain.

It was after the financial crisis that Chinese exporters and manufacturers, small ones in particular, learned to save for those rainy days through measures such as reserving part of their liquidity even when they are short of capital, carefully choosing foreign orders and employing more short-term workers.

【1】 【2】 【3】 【4】

News we recommend:
[Special]'Made in China' Revisited Chinese property companies speed up Rising food prices haunt our future
Telecom sector not in trouble Luxury brands continue to cash in HNA Group buys 48% stake in French airline
Asian economies turn to yuan  A Blessing for Businesses The Bitter Blessing


Leave your comment0 comments

  1. Name


Selections for you

  1. Aircrafts to perform in Zhuhai Air Show

  2. Weekly review of military photos

  3. The world in photos (2012.10.21-10.27)

  4. Typhoon Son-Tinh brings gales

  5. Shanghai enveloped in haze

  6. Exporters note the drag of US, Japanese

  7. Hottest night markets around the world

  8. Why women are better than men in spying?

Most Popular


  1. Asian Americans are x factor in U.S. swing states?
  2. Understanding key to Sino-US relations
  3. Kindergarten abuse cases becoming major worry
  4. Reform required for China's economic growth
  5. External markets crucial for business success
  6. Fears that yuan rise will hit exports unfounded
  7. Tax reform crucial to stable growth
  8. No sharp decline for property prices
  9. Japan to bear consequence of breaking promise
  10. How to hard sell China's soft power

What’s happening in China

50,000 gay people attended same sex parade in Taiwan

  1. Taxi windows locked for security
  2. Buzz word:Chinese style road crossing
  3. City more prosperous, but life harder: experts
  4. Public to have say on distribution of funds
  5. Shanghai 3rd best in Asia Pacific for shopping