Shanghai region slows

Yangtze map right.jpgThe Yangtze River Delta region (which includes Shanghai, Jiangsu and Zhejiang) accounted for 22% of China’s GDP in 2007. It is focused on exports to the USA and EU, and is a major centre for chemicals production. But now, like the Pearl River Delta, its economy is slowing fast. According to the China Daily, an increasing number of companies have ceased production, and some have gone bankrupt.
Shanghai’s Mayor, Han Zheng, says “We are seeing negative growth in fiscal revenue, industrial output and exports, and there is increasing pressure on employment”. And there are reports that industrial sector profits in the region fell 44% between January – September 2008. The main problem is the global recession, which has reduced demand for China’s exports. In turn, of course, this will reduce China’s import needs, so slowing the rest of Asia’s economy.

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