Can China Spend Its Way Out Of Trouble?
John Garnaut writes in the Age:
Wenzhou, the heartland of Chinese capitalism, is once again fighting for its survival. The city was famously forsaken by Maoist China but it stayed alive and later thrived by building one of the most entrepreneurial and dynamic marketplaces on the planet.
Wenzhou’s manufacturers used to battle against the Communist Party’s efforts to control them. Now, as China’s export markets collapse and they are forced to turn inland, they are fighting against the market itself.
“We had more than 1000 workers, but now we are down to about 700. The rest have bolted home,” says Shi Oubing, whose Triangular Cow factory made 3 million of the billion shoes produced last year in Wenzhou, a city ringed by mountains on the coast of Zhejiang province south of Shanghai.