Financial Crisis and Asia: Chinese rural population is supposed to stimulate the economy
Constanze TressMarch 30, 2009
Like Japan, China's economy relies heavily on exports. Its key trading partner is the United States - the engine which drives the world economy. But with the financial crisis, US consumer demand has fallen dramatically - with huge consequences for export driven economies. Factories in China have scaled down work and thousands of workers - mostly rural immigrants - have been laid off. To make up for the loss of overseas demand, the Chinese government is now trying to stimulate domestic consumer spending.