Blog # 7 Corey Sitton

I would like to assume that if China's, economy is in trouble, possibly everyone's is. Since about 2009, the Chinese economy has slowed to a very sluggish rate, and some even claim that China was predicted to hit rock bottom, and hit it hard. However, in the past couple of months, outstanding percentages have shown that China is infact leveling out from their downfall and even coming back up to a stable position in the economy. The econominc crisis in America and over the world in general is what perhaps has slowed Chinas economy. This short paragraph gives a good brief idea of what China is looking at:
"Despite signs of renewed growth in sectors like transportation, exports and tourism, many economists said that the economy was likely to accelerate only modestly in the coming quarters, and that it remained vulnerable to the fall-out from the euro zone crisis and the looming “fiscal cliff” of automatic tax increases and spending cuts in the United States."
Although in the fourth quarter data is showing good signals, as Zhiwei Zhang states, there is still a possible fear of uncertainty. Nobody can know for sure what the numbers will do in China throughout the remainder of the year.
China controls so much of the worlds economy. Knowing that they are not doing well themeselves is indeed a scary sign to everyone who trades with them. However, there could be some possible benefits.
Trade expenses may go down.  If China is loosing business, they may bring their costs down of shipping and freighting cost.  Also, product prices and management costs may also come down for big companies lke Apple, and Microsoft. However, China has never been known as a country to lower rates. A possible negative outcome of this experience could be primarily for the workers. As we have learned in class, when the upper men stop making as much money in China, they start taking it from the workers. They push the workers harder and harder to keep up with demand and take and restrict their pay and what few rights they have. This could be a social problem for any foreign companies which do business with China. It will definatley be interesting to see what comes of the Chinese economy in the fourth quarter.
http://www.nytimes.com/2012/10/19/business/global/19iht-yuan19.html