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The Chinese Consumer in Time of Financial Crisis

China is facing unique challenges in its own way. There are millions of migrant workers are going back to their villages because factories have closed its doors. There will be more factory closing in February. When the workers go back home for the Chinese New Year they will find out their factories will be shut down permanently.

Unfortunately those workers return to their villages to find out that they unlike their parents are never trained in being farmers. The Chinese government is well aware of this problems and is not keeping tabs on the number of returned migrant workers.

Many countries such as US and other western countries are hoping that China and India can pick up the economic slack. Unfortunately the purchasing power of those people is quite small and will not have much effect on the worldwide economy.

In other words the outlook for China's economy is gloomy indeed, although not as dark as the US economy.