How will the economy recession infect China?
This was selected as Best Answer Because China does not have a developed domestic market, its economy has been built on exporting. As the global trading situation deteriorates, this will accelerate the trend of rising unemployment. The majority of the migrant workers who returned home for the Lunar New Year are now unemployed. There is no work for them to return to. Thus, domestic demand will soften because there is insufficient earning capacity to maintain consumption. As domestic demand reduces, there will be an oversupply in the industries aimed at the domestic markets for non-essentials, prompting further unemployment. In my view, this recession is likely to hit China harder than many other countries in Asia and ASEAN although, with manufacturing capacity mothballed, it can recover fast when demand for exports recovers.
