The Times Online reports:
Bankruptcies, unemployment and social unrest are spreading more widely in China than officially reported, according to independent research that paints an ominous picture for the world economy.
The research was conducted for The Sunday Times over the last two months in three provinces vital to Chinese trade – Guangdong, Zhejiang and Jiangsu. It found that the global economic crisis has scythed through exports and set off dozens of protests that are never mentioned by the state media.
Now, I’m taking that with a grain of salt – not because I particularly doubt the sources in the article, but because I’ve found that it’s so much “news” about China is passed through filters that result in the China that writers and reporters think you should see, instead of the China that is. That said (and here is where my own filter kicks in), if things really are moving towards massive unrest in China, I think that’ll hit Western consumers just as hard as the financial mess. All those cheaper places people have started shopping at, lately? Direct pipeline of goods from China. And when that pipeline gets interrupted by unrest? Where are these stores going to turn? As best I can tell, they don’t have any other meaningful options.