The deepest slowdown is felt where the actual assembly lines are literally almost to a halt. With the USA being the largest consumers in the world, a slowdown on buying means a slowdown in manufacturing. Triple ouch for China.
- Just recovering from the Olympic blowout
- Minimal cash-in on investments after the Olympics
- Manufacturing industry slowdown
The Chinese stimulus package includes loosening of credit restrictions, tax cuts and a massive infrastructure spending program, according to China’s Xinhua news agency.
The money will be spent over the next two years to finance several areas, including low-income housing, technological innovation and rebuilding from several disasters — including the May 12 earthquake in Sichuan province that killed nearly 70,000 people.