Sunday, April 5, 2009

China recovering from a crisis

According to the China Association of economic researchers and the Sino-Europe International Business School, from the beginning of the year in China of 70 million rural residents who left their city jobs and come back to the village, about 56 million people have already returned to the city. Among them, 45 million have found jobs. This «new Izvestiya» said the company Optim Consult.

However, statistics for the period October 2008 - January 2009 had reduced its staff of about 40% of Chinese enterprises, but in February the negative trend has stopped, and moreover, was demonstrated to increase the number of jobs at the level of 1%. According to many experts, this means that the employment situation begins to normal. For example, in February was registered nearly 930 thousand new jobs, even though in November, this number amounted to 840 thousand in November - 550 thousand in December - 380 thousand.

«We are really seeing some improvement, but the final reconstruction of China after the crisis is premature to talk», - believes Eugene Kolesov, CEO of Optim Consult, specializes in consultation on matters of business with China. «We know that the number of orders from the U.S. and Europe dropped to the Chinese factories more than a third, making only 2 months of the year gone bankrupt for more than 3 thousand plants. The President of the Hong Kong Association of Small and Medium Enterprises recently announced that more than 40% of companies intend to freeze its production indefinitely. It is said that China needed a long period of time before the economy can take the former position », - commented the situation Kolesov.

Interestingly, many professionals from China cause massive unemployment and bankruptcy does not necessarily see the financial crisis. Thus, the president of the China-Europe International Business School Liu Ji sure that the thing taken in the 2008 amendments to the Employment Contracts Act, relating to improving the status of workers, resulting in significantly increased direct costs of enterprises. According to Liu Ji, the only way to stabilize the Chinese economy - to modify the said order.

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