Chinese Financial Situation

Chinese Financial Situation

The first signs of global financial crisis is not forced to wait long for the reaction of plants. Due to the situation in the world market will reduce the amount of output, whether it be floor tiles or the means to wood preservatives. Employment of about 2-3 thousand people is in question, by reducing the number of jobs everywhere. Also reduced working life of production to reduce the funds spent by manufacture of products. There are currently easier to survive the financial crisis in Russia to those agencies who have their own resource base. The forecast for next year is not reassuring.

Only the steel mills are going to reduce the volume of production by 20 percent. Solvency of the majority of plants are threatened, the state tries to reassure and support the production, to save from bankruptcy the majority of enterprises. Begin battle of factories and suppliers. Some want to lower prices for raw materials to avoid bankruptcy because of the large cash outlay. The latter are unwilling to reduce prices to the detriment of the first.

So the circle closes as a result of lack of understanding. Most likely a result of the crisis, most private companies will move into state hands, thus, to restructure the entire financial system. Overcome the banking crisis enterprise system will be able to take appropriate action if the Government to alleviate the situation. Consider some of them: 1. Stabilization of the financial system should be made government together with the economy. As a whole. 2. The stabilization of the crisis in the United States through joint action by all leaders. 3. Help the Chinese economy. If this country collapses, we shall strew her as a house of cards. As predicted by leading analysts, the improvement of the situation in the market place about midway through the second quarter of 2009. But let us hope for the best, supporting each other in this situation. Suppliers and manufacturers need to agree on further cooperation, satisfying both sides.

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