Economic Problems in China

China has been an economic success story, pulling millions of people out of abject poverty over the past decade but their growth has primarily come from increasing thier exports to highly developed economies like the US. The global economic crisis has severely curtailed most peoples spending habits resulting in a sharp decrease in Chinese exports and therefore their GDP. An article in the Economist points to possible political problems because the Chinese Communist Party’s political legitimacy is directly linked with high growth rates and economic development. So the question is, will the global economic crisis result in large scale political change? Will the Communist Party open up or suppress dissenters with physical force?

Strong as an ox? The Economist 01/22/09