Outsourcing Unemployment

Much of the Chinese factories are dependent on foreign companies. Without the orders from these companies, Chinese factories can't make any money. As much as other countries rely on China for their inexpensive labour and goods, China relies on them too. If the global economy is in recession, it makes sense that it would affect China as well. When consumers cut down on their spending, businesses can't get rid of their inventory, which eventually leads to less orders for the Chinese factories. I think China should try to export goods that are more inelastic. and also try to build relationships with other countries outside of United States. In addition to that, I think factories should be more responsible and let their workers know what's happening around so workers are prepared. They will have more time to look for jobs, etc.

i have seen many chinese workers had lost their jobs during the financial crisis. In china. lots of workers are manufacuring products to other nations such as US and Canada. However, along with the econmic downturn, china is also affected since companies in other countries are closing or reducing factories in china. that is the main reason why chinese unemployment is high now. but this problem will be solved in the near future becuase US are slowly going out from the crisises and chinese government is helpin its people to increase the employee rate. i am looking forward to china's future.

Yes, I do agree that many chinese people are losing there jobs due to this very widespread issue. But that is not very surprising after learning that Chinas economy is greatly dependent on the US economy. Therefore when the US economy falls, the Chinese economy also falls (in this case through job loses). But after watching this video I begin to ask myself a few questions like; why is the Chinese government not getting involved in this as much as they should be? I believe that if the government were to funnel some money into the economy many of these problems will be solved.

Although China is predicted to become the next "superpower", yet it still faces slow downs in the economy as major economies runs into recession. Even though China has strong factors of production in general, but unemployment rate is yet fairly high in China, depending on people's education, location, and experience. Unemployment issue will never be solved in China, because it's an endless cycle, where poor people will never get educated. China and the U.S will directly affect each other in the long run. We depend on China for the imports of goods and services, and they will as well depend on us for the investments and exports. Also, another issue arose to unemployment in China is that, since the Chinese Government has strict policies towards foreign companies and businesses, how will they generate more jobs? The unemployment issue will never be solved that way, if its poor literacy rate remains the same.

China's unemployment issue cannot continue to be overlooked because of the continuously growing population, causing many to seek jobs. In relation to this, many other countries around the world depend on China for their products because of cheaper labour costs. If the Chinese continue to cut down workers, how would the rest of the world’s economy respond to it, with their economies being at risk as well?

I believe that the situation cannot be inverted. Once a powerful economy is hurt, other economies, that depend on the powerful economy, are doomed. China is the perfect example. If there is no demand, there is no manufacturing process, and there are no jobs or investment. I believe China should bring the labour power forward and use its natural resources to be that powerful economy others will depend on.

Unemployment in china is a a huge issue that, i think will only be growing in the next couple of years. Though the country seems to be growing at a slower rate, there still is too many people for it to handle. Why didn't the government have any rules or laws set in place to control what was happening to the factories? Why couldn't China's government help its own people?

Unemployment is China is a huge issue, and dependence in the American market has shown the world why this is such a bad idea. As Anson brilliantly pointed out, China needs to move away from the primary and secondary industry, but at the same time, global interdependence on China has become huge in the previous years. If China were to move away from that market, countries worldwide would have to find someone to replace them, because cheap labour and ridiculous mark-ups have become the industry norm, which is an issue that must also be addressed.

At first, the notion of unemployment seems like a ridiculous suggestion, but global interdependency has led to one countries failings harm another’s. For example, during the Reagan administration, the demand for goods and services rose sharply, but as the American economy slowed and entered an economic trough, the manufacturers and exporters from China get harmed as well.

In a sense, it’s a vicious cycle that stems from Americans losing jobs and not having the initial capital to even spend on goods. This eventually gets outsourced to Chinese companies, as the extremely high number of jobs offered to workers become meaningless if there is no demand and many rural immigrants in China lose their jobs and are forced to leave the cities. The questions that need to be dealt with are:
“How can Americans regain their economic dominance and how can the Chinese move away from the secondary manufacturing industry.

Hey look its neema again. I tend to disagree with your comment, the reason why the chinese people are not spending more money is because most of them simply can't. With the chinese philosophy of GaiZhi, the people do not want government intervention especially within the economy. It is bad enough, and while it may be in the best interest of the country to improve the economy, it is not be in the best interest of the chinese government.

This video educated me greatly on this topic and answered some of the questions i had prior to viewing the video. I still do not see why the chinese people are not spending more money. More spending would definately help the economy. I think the government could be more involved in this situation and that would be in the best interest of the country.

WHERE IS THIS VIDEO! I saw it before but I want to someone else to see it.

Based on the video I fail to see how "political reforms" described here as introduction of "human rights" would resolve the effects of the global economic crisis and China's economic dependence on US foreign investment. I am not saying "human rights" is bad (although it doesn't necessarily include "labour rights", as witnessed in India...), but is that going to create more jobs or somehow revolutionize a global economy based on consumption?

The result of this outsourcing unemployment is due to the down fall of the U.S. As the Americans experience recession, so does china and the rest of the world.
I believe that this is nothing big to worry about for the Americans because although they are going through a rough patch, its economy is still strong enough to influence the rest of the world.

But the Americans do need to be working on stabilizing its economy in order to prevent such downfall to happen again. China, on the other hand, needs to search for other businesses that needs products produced, as well as becoming more self efficient.

This isn't the first time that North America has messed up and have it affect the world, without preparing for it prior to it happening. This isn't just a matter of China dealing with the problem, but it is an international matter. Other countries should intervene, such as America. Countries that rely on China's production of goods should encourage their people to buy more. Meanwhile, China should focus on being more self-sufficient, rather than depending on the countries they export to. This is a harsh lesson China and other countries who rely on industrial production and exporting must learn for the future. This is not as worse as it could have been.

China needs to look at other countries for support particularly countries with large populations. The Americans are to small of a population to support the entire worlds economy. China has the fastest growing economy and therefore needs to produce as many goods as possible. The chinese themselves need to purchase more to sustain their own economy. The only way to re-stimulate the global economy would be for these two economic powers to promote spending within their countries. This will employ many chinese labourers.
International Buisness
Kemp

It is interesting to see how much the U.S. has an affect on many contries, especially China since a lot of the products come from there. The best solution for China would be to find other countries to export the goods to. While the U.S. can still order the products there, China cannot be relying just on one source, they would be too dependant. USA should be buying more as well, as they need to realise that the world's economy depends on them.

It's true

Its true. Government inscentives in China to increase spending will stimulate the chinese economy and give the chinese people work. American companies should treat the workers in China as if they are their own employees in their own country. American spending has helped build parts of the chinese economy and consumerism is the only way to fix the problem.

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I agree with the fellow commenters, that a good solution would be for both countries to stimulate their economy by urging consumers to buy more products. China has the largest population in the world, if the government was able to promote spending money, maybe more jobs could be created since the demand for products would be higher. Also it could work if the USA urged their consumers to buy more, which in turn would help stimulate both economies, since more money would go into the US economy and the demand for more products to be made would therefore create more jobs in China. In my opinion neither governments are doing enough for their people and economies. I believe that once the American economy heals, the need for products will go up and both countries will benefit.

-Kemp business!

A good solution for both countries United States of America and China, is for the Americans to stimulate the economy again by buying more goods, this will allow the Chinese to produce more goods for America. Thus creating more jobs for the Chinese. The question is, how will American government encourage citizens to buy more?

In the global economy that is established today, where every country is inter-dependent on one another, the downfall of one could have drastic impact on many others. As seen in the report, who would've thought that the slowdown of the American economy could yield such an economical catastrophe half a globe away? While the video focused on China, I think China is not the only country that is affected by the American recession, what about other manufacture-based countries, such as India, or Thailand? It'd be curious to see if those countries are facing the same unemployment issues as China due to the withdrawal of U.S. factories. Furthermore, if the less-costly manufacturing countries are going down, where/how would we get our products? Will we be forced to purchase from more expensive alternatives? Will that catalyze unemployment here as well? What will the government do, and how will this vicious cycle be stopped?

Blogging for KEMP International Business : )

Could this have been foreseen? I believe this could have if so much of one country's income is a result of anouthers there economy become intertwined. so it was only natural that if one economy failed the other would too. to fix this i think the guv need to get involved again and once the economy is up and runin again that area will be just as successfull as ever

How can the Americans have so large of a purchasing power? No orders from them, no jobs in China?

The government should make more public schools only for people from the country side and try to educate those who want it so that people from the country side have a chance to do something other than labor work in factories.
I think China's government should try harder to solve this problem.

Im curious on how China will respond to the dept the U.S has, of course in time they will reclaim their money, but due to the economies of both of the super powers how will they reclaim it and more importantly how will the United States pay off their dept. Also, if the United States Companies were the ones to send over their manufacturing is the U.S then responsible for improving the unemployment rate in China considering it was their Companies and the lack of benefits they provided (i.e job stebility).

Blog For: International Buisness; Kemp

economic is made out of material purpose?

At the beginning Adam mentions this is the second of a three part series. Will somebody post links on this page to those two pages or tell me their titles so that I might be able to find them?

I thought I'd ask where to find the other two pieces -- I suppose the third part hasn't been uploaded yet -- but Part 1? Anyone?

Great job Adam :]

Great footage Adam!! Been pumping those biceps too we noticed lol :) Keep up the good work!! People are noticing!

oooo corporate america... look where we are now. thanks.

Interesting; wouldn't it be funny if China began outsourcing their light industrial manufacturing to North Korean labor camps?

I thought the piece did a decent job of representing a China that is a nation of hard workers who deserve more, rather than mindless communist drones.

Adam's reaction to Chinese children was hilarious.

It is interesting that the same countries that have for years decried US consumerism as destroying the world are now complaining that our lack of comsumerism is hurting them. I don't think many people in China care about the Americans who have lost their jobs, homes and life savings in the recent economic collapse, but we are expected to care about them. We will not rebuild the US economy, or help our own people who are suffering, by buying products marked "made in China". The only thing that will help is if our government puts the welfare of American citizens first for a change. Not that it will happen, but we can hope.

Excellent Journalism Adam. Definitely makes you think about the direction we're headed and our next plan of action.

Another brilliant report as usual

great coverage....also U.S. side...Lost Vegas was great

Imagining China with democracy brings a smile to my face.

great journalism (as usual!)