Yahoo Answers is shutting down on 4 May 2021 (Eastern Time) and the Yahoo Answers website is now in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.
Recent news that China is going to Recession, what benefit China may get doing this?
Recent news that China is going to Recession, what benefit China may get doing this, what could be the impact of this action on world economy specially the economies of Gulf countries those are heavily depend on China.
And more why china want to initiate the recession in their country, this will only create heavy unemployment, China does not have any fund problem they have huge amount with US, the country itself is very resourceful. They don't actually need much supply from other countries then why they want to go on recession when no credit crunch or money crisis?
1 Answer
- Tom SLv 79 years agoFavourite answer
In a recession, people spend less. As a result stores order less inventory. A lot of products that you find in the big retail stores carry a "Made in China" label. If people buy less goods then the stores will order less inports from China. As a result Chinese factories willl feel the effect of less exports. But since China has so many people, these factories can still sell a large amount of their produce locally. Also there is a large trade imbalance between China and most develoed countries. This means that we import a lot more Chinese products than what the Chinese buy from us. Is this fair - nope?