Economics of the Yangtze River Delta

Whilst reading The Telegraph online this morning I came across an excellent series of articles on the economics of the Yangtze River Delta.

Malcolm Moore is taking a road trip through the Yangtze River Delta the heart of the Chinese factory belt- to find out how badly it has been hit by the economic slowdown.

The Yangtze River Delta is factory-land. It was here that the Chinese economic miracle was born, in the coastal provinces of Jiangsu and Zhejiang. In Wenzhou, for example, entire towns are filled with factories producing a single low-cost product, be it shoes or cigarette lighters.
As the economy unravels, these provinces are said to be emptying of workers and filling with theft and violence.

Some commentators have suggested that the rising level of unemployment poses an existential challenge to the Communist Party, which has staked its authority on continuing prosperity.

The workers who still have jobs have taken drastic pay cuts, affecting their ability to send money home to their families in China’s interior.
But the reports are conflicting. Not everyone is convinced that there is a disaster unfolding in factory–land. Some economists believe only a few more factories have closed down this year than last year. Businessmen say new orders are coming in.

As migrants begin to return to factory-land after the Chinese New Year holiday, this is a crucial moment for Chinese manufacturers, for the cities they have built and for the government.

Will the workers return? Do they have jobs to come back to? Will China remain the workshop of the world? For one week, the Telegraph will travel through the heart of the Yangtze River Delta to deliver reports and images from the heart of China’s industrial machine.

There is an excellent set of articles to explore including:

China exporters offering lower exchange rates
China’s exports suffer sharpest fall in 13 years
Sparks of revival amid the collapse of steel.

Over the coming few days I will post some more detailed blogs looking at some of the economic issues raised by Malcolm Moore’s travels.