China experiences trade plunge
CNN.com and the Star Tribune reported on China's recent trade plunge. CNN's article said China's exports shrank 2.2% unexpectedly in November. This could result in heavy job loss, political unrest, and a sharper downturn in the world's fourth largest economy. China received a massive stimulus package meant to prevent economic downfall and even boost growth. They were depended on for global support as the United States weakens. JP Morgan economist Frank F.X. Gong said, "They need to urgently stimulate domestic demand and generate jobs and keep society stable." There has been a drop in foreign demand so factories that export products are forced to close or lay off employees. China's leaders are still urging employers to minimize cutbacks to avoid further economic unrest. China's economy was expected to grow by 9% this year but it is now at it's lowest forecast of %7.5 since 1990.
The Star Tribune wrote that China's imports also plunged sharply last month by 17.9 percent. China was expecting a slowdown in their economy but they did not expect one of this size this quickly. The economic future of China looks gloomy even if it is better than the United States' and Europe's economic state.