The bearish stories mount in China. We have the municipal debt debacle, plus continuing signs of troubles in the industrial heart of things:
China’s southeastern Guangdong province, the country’s main export manufacturing hub often referred to as “the factory of the world,” is in danger of losing its economic mojo amid a litany of woes.
Small and midsize manufacturers of clothes and other export goods that have been flooding markets around the world are struggling with rising materials costs, shortages of workers and funds and the upward trend of the Chinese currency, the renminbi or yuan.
Many of these businesses have gone under or cut back on production sharply during the current hard times, which some local business owners say are even harsher than the economic slump triggered by the global financial crisis in 2008.
Gathering economic gloom is fomenting social unrest in this heartland of China’s export-oriented economy, as a recent series of riots in the province show.