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Q: How will the Chinese handle a recession?

Every economy must take a downturn.  Even artificially boosted ones.  It seems China is headed in that general direction.  Not that the numbers will reflect it, but when you're spending billions on ghost cities to keep up your growth figures, it could be argued that soon parts of China might be effectively in a recession, if not technically.  However you label it, it will certainly have a considerable affect on the Chinese.  Chinese workers who aren't used to being efficient or competitive will be faced with market conditions that have a tendency to weed out the weak companies.  Chinese have a distant memory of starving, but have been promised prosperity for so long.  Can they overcome the disappointment?  What would a recession mean for Chinese society?

6 years 1 week ago in  General  - China

 
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In many ways I hope it happens. Chinese society is highly stratified and people worship money shamelessly. Most business is done with guanxi and this guanxi seems to benefit "established/elite" families. A recession would be the perfect purge for these idiots. Not only would they lose a lot of their wealth, but they would lose face having to sell the black audi that they leveraged the (failing) family business even further by using it as collateral for a loan to impress the classmates of the "lady" of the family.

 

If you want to get rich quickly in China, buy some demolition equipment and start wining and dining the government officials. The opportunity cost is high but once you're in the work is simple and the returns are exponential.

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6 years 1 week ago
 
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Governor

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The problem is that the CPC has built it's legitimacy (LOL) on economic growth, so  the people are reasonably satisfied during the good economic times. And a recession could be the end of the CPC, which is a good thing.

 

As for the people, if you read the news here you can see how Chinese people react to adversity like gambling debts, getting laid off, cheating spouses, Japan existing and so on. Millions of short tempered, greedy people with nothing to lose? Yeah that's a recipe for disaster.

 

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6 years 1 week ago
 
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this thought looms in my mind whenever i wonder if this is a safe place to live. it's a close contender to education - the main reason to leave when you have kids.

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6 years 1 week ago
 
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jump in suicide rates and gangs with pitchforks roaming the streets

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6 years 1 week ago
 
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Emperor

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At least for the early phase

* Protectionism full throttle, pushing national producers and crippling foreign businesses

* Promotion of nationalism

* Injection of cash to dampen things a bit. The central government have a lot of cash and not much debts.

* Deflects the blame on local governments, some are already quite indebted.

 

It will slow down things a bit and keep the appearances without solving the issues. China will enter a period of stagnation at the same time they will enter there papy boom. Maybe they will implement welfare schemes and encourage limited local civil life, enforce rule of law, liberalize cultural expression bit, and actually improve the education system... I wish so but I don't believe it will happen. It could have happened in the early 90's.

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6 years 1 week ago
 
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The same way they handle all problems........by denying there is a problem.

 

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6 years 1 week ago
 
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I don't know where you get your info that the market in China is heading for a crash, nooooo, China needs to slow things down first so they can begin a market scheme. The next 30 years will be bright for China. Slowing the old scheme down was the plan man.

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6 years 1 week ago
 
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In the 30 odd years that China has opened up it hasn't been through a single recession. All they have experienced is growth and yet more growth. When (not if) recession finally comes around, you will see many people going bankrupt, commit suicide and taking advantage of the downturn. People here don't know what it's like to have a economy meltdown. I can't imagine a country as massive as China going into recession. The impact within and outside the country will be huge. In my opinion, China's economy is running on borrowed time. Something's got to give soon.

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6 years 1 week ago
 
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With class and dignity, the same way Chinese handle everything. 

 

Just kidding. The only thing that is sacred to the Chinese is money. It is the solitary thing that dictates a Chinese person's behavior. Will they work? It depends on whether they will personally make money from it that they would not make otherwise. Is something ethical? Ethics don't matter, the bottom line does. If the money goes, people won't respond rationally. I wouldn't want to be in this country when the inevitable happens.

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6 years 1 week ago
 
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Pretend there is no problem, until it is impossible to ignore, then blame Japan and/or those barbarians from the evil land of Weiguo. 

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6 years 1 week ago
 
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Not only Chinese, even I can't handle it. If only China goes to recession then fine. Unfortunately it is taking and it will take many other countries deep down to the three gorges dam and burst.

 

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6 years 1 week ago
 
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' PANIC'  as they do with most things at effect they're lives. Maybe even ask Africa and India for the return of the $20 billion each they have just invested. And then reintroduce the green trains and rickshaws.

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6 years 1 week ago
 
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In next 20 years, BRICS in 'green-ish', and West in 'Japan-ish' or 'red' per my 'tin foil hat'.

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6 years 1 week ago
 
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"  Chinese workers who aren't used to being efficient or competitive will be faced with market conditions that have a tendency to weed out the weak companies. "

 

Nope  - that won't happen! The most useless members of a company or business are the people at the top - and all their relatives who are employed there. It's a very rare Chinese person who would fire their incompetent aunt when they\ve got a room full of strangers! And no boss has the guts to admit they might be wrong (and then hire an expert!!)

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6 years 1 week ago
 
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My guess is very badly, economic growth and (false) promises of wealth for everyone are the only two things holding China together nowadays. Remember Deng's promise to legitimate the CCP.

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6 years 1 week ago
 
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On the other, it over estimates the amount of the US debt that China owns. You want to know how much it is as measured against the total debt? Ready for it? Ok! It's 8%. Wop-Wah (sad trombone noise.) The article you'rhack wrote can't even get the number right. It's only 1.3 trillion, not the 3 Trillion he supposes. http://www.factcheck.org/2013/11/who-holds-our-debt/

 

 

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6 years 1 week ago
 
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Hey, do you think Coca-Cola would like me to buy a coke? And which OS do you think Bill Gates prefer I use. I mean honestly.

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6 years 1 week ago
 
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https://www.youtube.com/watch?v=j656W9sMAuA

 

 

Vietnam arrests hundred of Chinese illegally searching for work and food in the country.

 

Oh, how the mighty have fallen, KARMA with your coffee.

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7 weeks 1 day ago
 
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