Crisis in China
During the first three quarters of 2008, foreign reserves of China reached nearly 2 trillion dollars, but in the IV quarter of those stocks began to fall, dropping to 1.9 trillion dollars PRC authorities announced a plan to invest up to 586 billion dollars in new facilities and in agriculture. This amounts to 18% of the GDP of China, whereas the "Paulson Plan" in the U.S. is up 6% of GDP.
20 November 2008 the Minister of Human Resources and Social Security, a member of the State Council of China, Yin Weimin officially acknowledged an increase in the number of unemployed in the country, calling the situation "critical": factories, export-oriented, are forced to close.
In connection with the reduction in external demand are announced intentions of the Chinese government to reorient the economy to domestic demand. Also, representatives of China announced the proposed transfer of its reserves in gold.
In 2008 China's GDP is expected to grow by 9-10%, for 2009 is projected to rise, according to various estimates, from 5 to 10%. Thus, the World Bank forecasts growth at 7,5%, Goldman Sachs - at 6%.
The deteriorating world economic situation has led to the Chinese industry has reduced the demand for raw materials, which, in turn, led to a decline in world prices, including steel products.
January 7, 2009 agency Xinhua, commenting on Henry Paulson and Ben Bernanke, is responsible for the global crisis on the U.S. authorities, accusing them of "excessive emission of dollars with the complicity of the control departments."