Chapter 14 The Economic Crisis and China's Economy
After the founding of the People's Republic of China, there were four large-scale economic crises in the world, one was the stagflation crisis in 1973 and 1975, the second was the Black Monday (** collapse) in 1987, the Southeast Asian financial crisis in 1997, and the global economic crisis in 2008 caused by the subprime mortgage crisis. Among them, China was in a closed state when the stagflation crisis occurred, and the crisis had little impact on China; The economic crisis in 1987 greatly affected Hong Kong**, but Hong Kong has not yet returned; At this time, China has implemented reform and opening up, and the number of foreign countries is increasing year by year, and China has not yet been established (the Shanghai Stock Exchange was established in December 1990).
According to the data of the National Bureau of Statistics, China's total import and export volume reached 73.8 billion US dollars in 1986, an increase of 6 over the previous year1％。Its total exports were 30.9 billion US dollars, an increase of 131％；The total import value was 42.9 billion US dollars, an increase of 16％。In 1987, the total import and export volume reached 82.7 billion US dollars, an increase of 12 over the previous year; Its total export volume was 39.5 billion US dollars, an increase of 27.8 ; The total value of imports was 43.2 billion US dollars, an increase of 0.7 . The import and export deficit narrowed to $3.7 billion from $12 billion in the previous year. In 1988, the total value of imports and exports reached $102.79 billion, an increase of 24 percent over the previous year4％；Its total number of mouths is 475$400 million, an increase of 206％；The total value of imports is 552$500 million, an increase of 279％。After deducting the aid donations that do not receive and pay foreign exchange, processing with supplied materials and foreign imports as investment, the deficit is 30$900 million.
The 1997 Southeast Asian financial crisis was different, and it had a greater impact on China's economic development. According to the 1998 National Economic and Social Development Statistical Bulletin, export growth slowed down markedly due to the impact of the Asian financial crisis; Imports fell due to factors such as domestic demand. The total import and export volume for the whole year was 324 billion US dollars, a decrease of 04％。The total export value was 183.8 billion US dollars, an increase of 05%。Among them, the general ** export fell by 48. Exports of processing increased by 49％；The total import value was 140.2 billion US dollars, down 15％。Imports and exports were offset, with a surplus of $43.6 billion. The structure of import and export commodities was further optimized, and the export of machinery and transportation equipment increased by 149, accounting for 27 of total exports3%；Imports grew by 76, the proportion of total imports rose to 405％。In the face of changes in the export situation, we will further promote the market diversification strategy. Exports to Asia fell by 9 percent for the year9, but exports to Europe and North America increased by 157. Exports to Africa and Latin America increased by 201. Exports to Oceania increased by 110%。
The Southeast Asian financial crisis began with the Thai currency crisis, which has a lot to do with the problems of its own economic development. In 1996, Thailand's current-account deficit was as high as 8 percent of GDP2%, in 1997, due to the difficulties in the cash flow of financial institutions, there was a bank run. International investors, led by the quantum ** of George Soros, a big American speculator, saw an opportunity to take advantage of it, and then launched a fierce attack on the Thai baht. On July 2, Thailand** announced that it had abandoned the fixed exchange rate system that had been implemented since 1984 and changed to a managed floating exchange rate system, which depreciated by 20% on the same day, and since then the Thai currency crisis has broken out in full swing, and quickly led to a full-scale financial crisis in Southeast Asia, which then affected the world.
The ** of the Thai baht has formed a "domino effect" in Southeast Asian countries, and the currency trend has quickly spread to the entire Southeast Asian market. On July 11, the Philippines announced a free float of the currency, and the Philippine peso depreciated by 11 on the same day5%, and the interest rate soared to 25% overnight; On the same day, Indonesia announced that the volatility of the rupiah exchange rate would expand from 8% to 12%; On August 14, Indonesia announced that the exchange rate was free to float, and the rupiah depreciated by 5% again on the same day; On 16 August, the Malaysian ringgit fell by 6%, falling to a 24-year low.
In August, Malaysia abandoned efforts to defend the ringgit. Overnight, Malaysia's top 12 richest people lost $13 billion in the ** market alone. No wonder the Malaysian Prime Minister cursed George Soros by name, gritting his teeth and saying: "This guy came to our country and overnight, more than ten years of struggle of our whole country have come to naught." ”
In the face of the crisis, Japan** not only did not play its role as a regional power, let alone use a large amount of foreign exchange reserves to stabilize the yen, but allowed the yen to depreciate, and by the end of 1997, the yen fell below the 130 yen mark against the US dollar, depreciating by 17 03 yen from the beginning of the year.
In 1998, the crisis deepened, and the exchange rate of the Indonesian rupiah against the US dollar on the 8th of l**26. On the 12th of l, Hong Kong's Hang Seng Index** 773 58 points, Singapore, Taiwan, China** fell 102 88 points, 362 points and 330 66 points respectively.
At the end of March 1998, the hardest hit were the Thai baht, the won, the Indonesian rupiah and the Singapore dollar, which depreciated by 61 per cent and 61 per cent, respectively. The crisis has bankrupted tens of thousands of businesses in Thailand, more than 2 million people have lost their jobs, and tens of millions of people have lost their jobs in Indonesia.
In this crisis, international speculators made huge profits in the foreign exchange market and the ** futures market at the same time. However, after making many profits in the Southeast Asian financial crisis, the international quantum and hedging launched an all-out attack on Hong Kong's financial industry in August 1998, triggering the "Hong Kong Financial Defense War".
The historical background of Hong Kong's financial defense. July 2, 1997, the day after the handover of Hong Kong, to George. The international hedgers led by Soros were the first to change their attacks in Thailand, where the financial system is relatively weak, and Southeast Asian countries suffered heavy losses. In particular, on October 20, 1997, a decade after Black Monday in 1987, international speculators began to attack Hong Kong. On October 20, Hong Kong's Hang Seng Index increased from ** point 13601 on the 19th01** to 1297088,**631 points,**amplitude of 4.63%, 21st, 22nd, 23rd and respectively **. 41%, * to 104263 ** points, October 28 put Hang Seng Index ** settlement delivery day, the Hang Seng Index again sharply **1438 points, ** amplitude of 137%。Hong Kong's Hang Seng Index rose from a peak of 15,242 in early October65 points, down to the lowest point of 8775 on October 2888,**6466 points, even if calculated according to the average index of 14,800 points at the beginning of the month, the difference between the Hang Seng Index points has reached more than 6,000 points, and the corresponding stock index ** index is also about 6,000 points.
You must know that the rise and fall of the Hang Seng Index is closely related to the rise and fall of the Hang Seng Index, and international speculative capital is making huge profits in the Hang Seng Index. For every 1 point drop in the Hang Seng Index**, you can earn HK$50 for each short (put, short) Hang Seng Index** contract; The Hang Seng Index ** is more than 6,000 points, and each contract can earn more than 300,000 Hong Kong dollars, which is shocking! No wonder the West exclaimed: Hong Kong has become an "ATM" for international speculators. While international speculators are making profits, it is a huge loss of investment. From October 20 to 23, 1997, the Hang Seng Index rose by more than 3,000 points, and the top ten richest people in Hong Kong lost 210 billion Hong Kong dollars, and the majority of small and medium-sized investors suffered heavy losses.
Hong Kong Hang Seng Index** (1998.)8-1998.1）
Data**: Under normal circumstances, the wealth plundering war of international speculative capital on the financial market first starts from the foreign exchange market, and a large amount of Hong Kong dollars are exchanged for US dollars in the foreign exchange market, which reduces the circulation of Hong Kong dollars in the market, forcing the Hong Kong government to raise bank interest rates and interbank interest rates, and maintain the relative stability of the exchange rate (the Hong Kong dollar adopts a linked exchange rate system, which will not depreciate sharply unless the linked exchange rate system is lifted). Due to the failure of the Hong Kong Monetary Authority to transfer the Hong Kong dollar to the bank in a timely manner in the previous times, the circulation of the Hong Kong dollar has decreased, which in turn has hit ** and the stock index, and also suppressed the stock index**; International speculators bought a large number of put and short contracts in the early stage, and achieved a huge Hang Seng Index ** point difference from the sharp fall of the stock index, so as to achieve quick profits and get rich overnight.
The process of blocking the battle for Hong Kong's financial defense. In August 1998, after profiting from a number of attacks on the Hong Kong dollar, international currency speculators launched the largest attack on the Hong Kong dollar since October 1997. As early as this month, speculators trumpeted that the renminbi would depreciate sharply, so much so that the black market trading of the renminbi in Shanghai, Guangzhou and elsewhere fell to 9 per dollar5 RMB level. At the same time, speculators have also hyped rumours about the instability of mainland banks, still with the aim of creating conditions for sniping at the Hong Kong dollar. In addition, there is even an overseas ** opened an option for the decoupling of Hong Kong's linked exchange rate on August 12, 1998, and threatened that "the Hong Kong dollar will soon be decoupled from the US dollar and depreciate by 40%", and the Hang Seng Index will fall to 4,000 points" and so on.
On August 5 and 6, 1998, international speculators sold more than 40 billion Hong Kong dollars for two consecutive days, in order to raise the interbank market lending rate and hit the ** and ** markets. The Hong Kong Monetary Authority (HKMA) has reversed its past reactive approach and used Hong Kong's fiscal reserves to absorb the entire amount and stabilize the foreign exchange market at US$1 to US$7HK$75 level. At the same time, the absorbed Hong Kong dollar will be quickly deposited into the banking system, reduce and stabilize the interbank lending rate, and prevent the market from being caused by insufficient funds.
From the 7th to the 13th, Hong Kong** continued to adopt the method of absorbing Hong Kong dollars to achieve the purpose of stabilizing the interbank interest rate and stabilizing the ** and futures markets. On August 7, the company announced its interim results, and some blue-chip stocks performed poorly, resulting in a large number of results, and the Hang Seng Index fell from 7254 on the 6th36** to 6660 on the 13th42, the lowest once fell to 654479 points.
In the midst of the crisis, Hong Kong, with the strong support of the market, announced that it had used foreign exchange to intervene in the futures market after the market closed on August 13. On August 14, Hong Kong officially participated in the futures market. In order to maintain the Hong Kong dollar, Hong Kong has brought a huge amount of foreign exchange into the market and the market to directly confront speculators. The Hong Kong government instructed a number of ** banks such as Bank of China, Victory, and Hesheng to absorb the blue chips of the Hang Seng Index on a large scale, saying that it would not hesitate to raise the August futures index by 600 points, which is higher than the average opening price of 7,500 points for investment speculators. Hong Kong** has reversed its previous policy of "zero intervention", which has dealt an unexpected blow to speculators. It is said that when Soros learned that *** vigorously supported Hong Kong ** financially to ensure the stability and prosperity of Hong Kong's economy, the teacup in his hand fell to the ground all of a sudden.
Hong Kong's Hang Seng Index during the Southeast Asian crisis**
August 28, 1998, is the settlement day of the Hong Kong Hang Seng Index ** August contract, but also the Hong Kong SAR ** and international speculators thrilling life and death battle day, after ten trading days of fierce fighting between the two sides, only 5 minutes after the market opened at 10 o'clock in the morning on the 28th, the turnover of ** exceeded 3.9 billion Hong Kong dollars. Half an hour later, the turnover exceeded HK$10 billion, and by the time the market closed in the morning, the turnover had reached a huge HK$40 billion, close to the record daily turnover of HK$46 billion set on August 29, 1997. After the market opened in the afternoon, the sell-off continued unabated, and the trading volume climbed all the way, but the Hang Seng Index and the futures index remained above 7,800 points. When the needle pointed to 4 p.m., the numbers of the Hang Seng Index, ** Index and market volume that were constantly beating on the electronic screen finally stopped at "7829 points", "7851 points" and "79 billion Hong Kong dollars" respectively.
August 28, 1998, for George. For international speculators, led by Soros, it is a day worth repenting. On this day, the Hong Kong Special Administrative Region (HKSAR) finally pushed the Hang Seng Index from 6,660 points on August 13 to 7,829 points on the 28th, and forced speculators to settle and deliver the August stock index at the ** level. Once the delivery is closed, huge losses are inevitable, and international speculators are forced to transfer their positions, counting on another battle in September.
However, the Hong Kong Special Administrative Region (HKSAR) has made up its mind that it will continue to push up the market and stock indices in September, forcing speculative capital to leave the market with losses. On September 7, the Hong Kong Monetary Authority promulgated a series of market-sound measures such as new regulations on foreign exchange, ** trading and settlement, raising the margin of stock indexes**, and restricting ** shorting of heavy stocks. Seeing that the general trend has gone, international speculators have left the market at a loss and fled.
In this financial defense war, Hong Kong used about 13% of its foreign exchange in the futures market, about 10 billion US dollars (Hong Kong's foreign exchange reserves were 88.1 billion US dollars in September 1997), to carry out a financial resistance war. In 1999, Hong Kong** gradually withdrew funds from the market, making billions of dollars in profits. And the international ** led by Soros has also profited a lot from the entire southeastern crisis. According to some data, before the battle to defend Hong Kong's finances, international speculators made profits of more than $4 billion, and after that, they made profits of more than $2 billion.
The significance of Hong Kong's financial defense. On July 2, 1997, the Southeast Asian financial crisis first broke out in Thailand, which was the day after Hong Kong's return to the motherland. I don't know, it's a historical coincidence, or someone did it on purpose. The Hong Kong issue has a long history, some people are trying to internationalize it, obstruct Hong Kong's normal return, and inhibit China's development. If one plan fails, another plan fails, armed intervention fails, political interference is hopeless, and what about economic destruction? To first destroy the economy, enter the political circles, and then internationalize the Hong Kong issue, so as to achieve the goal of surrendering without a fight. This is just the opposite of the "May Storm" in France, which first entered the political circles, agitated the student and workers' movements, and then took the opportunity to disrupt the French foreign exchange market and economic development.
In short, the financial defense of Hong Kong is the success of the Hong Kong Special Administrative Region (HKSAR) in resisting the attacks and wealth plundering of weak economies by international speculative capital, and it has also sounded the alarm for the international financial system to ensure the international exchange rate stability mechanism. At the same time, it has maintained economic and social stability in Hong Kong, and gained valuable experience for other countries and regions to resist the attacks of international financial predators.
In the crisis in Southeast Asia, China** promised not to depreciate the renminbi, and used the country's foreign exchange reserves to support the Hong Kong Special Administrative Region**, maintain the stability of Hong Kong's foreign exchange market, ** and stock index**, protect the personal wealth of Hong Kong citizens, and promote the sustainable development of Hong Kong's economy. At the same time, it has also enhanced China's national image, and the RMB has been further recognized by the international community, laying the foundation for the internationalization of the RMB.
In this crisis, China** pledged not to depreciate the renminbi, and used the country's foreign exchange reserves to support the Hong Kong Special Administrative Region**, maintain the stability of Hong Kong's foreign exchange market, ** and stock index**, protect the personal wealth of Hong Kong citizens, and promote the sustainable development of Hong Kong's economy. At the same time, it has also enhanced China's national image, and the RMB has been further recognized by the international community, laying the foundation for the internationalization of the RMB.
This crisis has a greater impact on China's economic development, and the total amount of imports and exports has decreased significantly in the crisis compared with before and after the crisis. In 1996, the total import and export volume reached $289.9 billion, an increase of 3.2 over the previous year. In 1997, the total import and export volume was 325.1 billion US dollars, an increase of 12.1 over the previous year. In 1998, the total import and export volume was 324 billion US dollars, down 04％。In 1999, the total import and export volume was 360.7 billion US dollars, an increase of 11 percent over the previous year3%。At the same time, during the financial crisis, the renminbi did not depreciate, benefiting from the exchange rate reform in 1995, which provided a broad space for the renminbi to strengthen during the crisis. First, the reform of the RMB exchange rate in 1994 made the RMB depreciate sharply before the crisis, and the RMB against the US dollar increased from 1 US dollar to RMB 5 in 1993 before the exchange rate reform76 yuan, depreciating to 1 US dollar to 862 yuan (the initial price of the exchange was 1:8.)7) Improve the anti-risk ability of the RMB. Second, the exchange rate reform and the depreciation of the renminbi have improved the international competitiveness of China's commodities, and exports have increased rapidly and foreign exchange reserves have increased rapidly. According to statistics, from 1998 to November, China's foreign exchange reserves totaled 1,445$900 million, an increase of 41. Compared with the same period in 1997, the growth rate has dropped significantly. Third, the exchange rate reform has gotten rid of the dual-track exchange rate system, making international exchanges more convenient and faster, which is conducive to external investment and foreign exports.
There were many reasons for the outbreak of the financial crisis in 1997, including the following direct factors: First, the impact of upstream capital in the international financial market. There are approximately $7 trillion in liquid international capital worldwide. As soon as it is profitable, it will immediately speculate on the currency of the country or region in order to make a huge profit in the short term. Second, the foreign exchange policies of some Asian countries are inappropriate. In order to attract foreign investment, they have maintained a fixed exchange rate on the one hand, and on the other hand, they have expanded financial liberalization, which has provided opportunities for international speculators. Third, in order to maintain a fixed exchange rate system, these countries have used their foreign exchange reserves to cover their deficits for a long time, resulting in an increase in external debt. Fourth, the external debt structure of these countries is irrational. There are many medium-term and short-term debts, and they are vulnerable to external attacks.
Indirect factors include: First, the negative impact of economic globalization. The second is the irrational international division of labor and exchanges. The third is the blind innovation of the financial system.
Ten years after the Southeast Financial Crisis, the subprime mortgage crisis broke out in the United States, and the subprime crisis in the United States (subprime crisis) is also known as the subprime mortgage crisis, also translated as the subprime crisis. It refers to a financial turmoil that occurred in the United States due to the bankruptcy of subprime mortgage lenders, the forced closure of investments, and the drastic. It has led to a crisis of illiquidity in the world's major financial markets. The "subprime mortgage crisis" in the United States began to emerge gradually in the spring of 2006. In August 2007, it began to sweep the world's major financial markets, including the United States, the European Union, and Japan. In 2008, the subprime mortgage crisis gradually turned into a global economic crisis.
In February 2007, the subprime mortgage crisis had begun to emerge, until April 2, 2007, in the face of $17.4 billion of forced debt from Wall Street, the second largest subprime mortgage company in the United States, New Century Financial, announced that it had filed for bankruptcy protection and laid off 54 employees. After that, there was a domino effect among subprime mortgage companies in the United States, and more than 30 subprime mortgage companies were forced to close down, which evolved into a systemic crisis of subprime mortgages. In June, two hedges** of Bear Stearns, the fifth-largest investment bank in the United States, suffered huge losses on subprime mortgage investments. In July, Moody's downgraded the credit ratings of 399 subprime mortgage bonds with a total value of about $5.2 billion. In early August, financial institutions in France, Germany, Japan and other countries outside the United States began to disclose subprime mortgage-related losses, and the subprime mortgage crisis began to spread to the global financial system.
In mid-January 2008, Citigroup and Merrill Lynch respectively announced a net loss of 98 percent due to subprime mortgagesWith $300 million and $9.8 billion in asset write-downs, JPMorgan Chase reported a fourth-quarter loss of 35 percent in 2007$8.8 billion. At the end of January, UBS expected a loss of about $11.4 billion in the fourth quarter. In mid-March, Bear Stearns, the former fifth-largest investment bank in the United States, was given a 2$400 million ** acquisition. Panic among investors is starting to spread, market volatility is expanding, and expectations for the economic outlook are becoming increasingly pessimistic.
In mid-July 2008, Fannie Mae and Freddie Mac, with assets of more than $5 trillion, both saw their stock prices plummet by more than 50 percent due to financial difficulties and investor concerns. In mid-September, Lehman Brothers filed for bankruptcy protection, the US insurance giant AIG was in trouble, and Merrill Lynch was acquired by Bank of America for $50.3 billion. So far, three of the top five investment banks on Wall Street have disappeared in the subprime mortgage crisis, and the other two investment banks that have survived for the time being, Goldman Sachs and Morgan Stanley, have been transformed into bank holding companies. The bankruptcy of Lehman Brothers completely destroyed the confidence of global investors, and the world, including China, fell in response, investor panic almost collapsed, and the global market continued to appear. The subprime mortgage crisis has turned into a global financial crisis.
On March 2, 2009, the Dow Jones Industrial Average closed at 676329 points, the lowest level since April 1997**, also means that the market value of the Dow Jones has lost more than half in just one and a half years. On June 1, 2009, GM went bankrupt.
As for the causes of the financial crisis in the United States, the general view is that the crisis is mainly caused by the lack of financial supervision and control, and that those greedy Wall Street speculators take advantage of the loopholes of the system to deceive and deceive the public. One of the root causes of this crisis lies in the neoliberal economic policies that the United States has accelerated for nearly three decades.
The so-called neoliberalism is a set of ideological trends that take the revival of traditional liberal ideals and the reduction of economic and social intervention as the main economic policy goal. The neoliberal economic policy of the United States began in the early 80s of the 20th century, and its background was the economic stagflation crisis of the 70s, which mainly included: reducing the intervention of the first in the financial, labor and other markets, cracking down on trade unions, and implementing economic policies to promote consumption and promote high growth with high consumption.
The apparent cause of the storm in the U.S. subprime mortgage market is the rise in interest rates in the U.S. and the continued cooling of the housing market. The rise in interest rates has led to an increase in repayment pressure, and many users with poor credit feel that there is a high pressure to repay and the possibility of default, which will affect the recovery of bank loans, and also have a serious impact on many countries around the world, including China. Some scholars have pointed out that "the United States, which should have gone bankrupt long ago, owes too much debt to other countries in the world, and because creditor countries do not want to see the United States go bankrupt, not only cannot abandon the US Treasury bonds, but must even continue to subscribe to more US debts to ensure that the United States does not go bankrupt."
Loans are a very common phenomenon in the United States. Locals rarely buy houses in full, often with long-term loans. But unemployment and re-employment are common here. These people who have an unstable or even no income at all, and buy a house because their credit rating does not meet the standard, they are defined as subprime credit lenders, referred to as subprime lenders.
Due to the high housing prices before, the bank believes that although the loan is given to the subprime credit borrower, if the borrower is unable to repay the loan, the mortgaged house can be used to repay, auction or recover the bank loan. However, due to the sudden drop in housing prices, when the borrower is unable to repay, the bank sells the house**, but finds that the funds obtained cannot cover the interest of the loan at that time, or even the loan amount itself, so the bank will lose money on this loan.
It's fine for one or two borrowers to have such problems, but due to the rising interest on installments and the fact that these borrowers themselves are subprime lenders, this has led to a large number of borrowers who are unable to repay their loans. As mentioned above, the bank repossessed the house, but could not sell it, and suffered a large loss, triggering the subprime mortgage crisis.
The U.S. subprime mortgage market typically uses a combination of fixed and variable rate repayments, where homebuyers repay their loans at a fixed rate for the first few years after home purchase, and then at a variable rate.
In the five years leading up to 2006, the U.S. subprime mortgage market grew rapidly due to the continued boom in the U.S. housing market and the low level of U.S. interest rates in previous years. As the U.S. housing market cools, especially short-term interest rates rise, subprime mortgage repayment rates have also risen sharply, and homebuyers' repayment burdens have increased significantly. At the same time, the continued cooling of the housing market has also made it difficult for home buyers to refinance their homes or mortgage homes. This situation directly led to the failure of borrowers of large batches of loans to repay their loans on time, which in turn led to the "subprime mortgage crisis".
The impact of the subprime mortgage crisis on China's economy. On March 1, 2009, China Economic Weekly reported that "as of January 20, 2009, 9.5 million migrant workers had returned to their hometowns in Henan Province, accounting for about 53% of the number of people who went out to work, of which 2.8 million had returned to their hometowns due to the financial crisis, accounting for about 30% of the number of people who had returned to their hometowns. 5.7 million migrant workers returned home for the holidays, accounting for about 60% of the total number of migrant workers who returned to their hometowns; About 1 million people have returned to their hometowns for other reasons, accounting for about 10% of the number of people who have gone out to work" On December 15, 2008, China Economic Weekly reported: "As far as the world is concerned, the international financial crisis has turned all eyes on the United States; As far as China is concerned, the Pearl River Delta seems to be the "eye of the storm" in this storm. "The tide of bankruptcy", "the tide of migrant workers returning to their hometowns", and "the evaporation of foreign enterprise bosses" ......In October and November 2008, rumours and panic hung over the PRD. "On October 23, Chen Zhenren, president of the Federation of Hong Kong Industries, said that there are 70,000 Hong Kong-funded enterprises in the Pearl River Delta, and if there is a problem with 1 4, then there will be 1750,000 businesses went out of business. In connection with this, these 70,000 factories employ more than 10 million workers in the PRD, and when the closure of 1 4 factories occurs, it will cause 2.5 million employees to lose their jobs and trigger a wave of unemployment. ......The cities with the largest number of closed enterprises were: Dongguan (1,464), Zhongshan (956), Zhuhai (709), Shenzhen (704), Shanwei (587), Foshan (526) and Chaozhou (432). From the perspective of industry distribution, the closed enterprises are mainly concentrated in traditional, low-tech, and high-energy-consuming industries such as textiles and garments, hardware and plastics, electronic products, and ceramics and building materials. This shows how much the impact of the global financial crisis triggered by the subprime mortgage crisis on China is.
In order to deal with the crisis, on March 5, 2009, Wen Jiabao said in his work report on the main tasks for 2009: "This year's work should be based on the main line of responding to the international financial crisis and promoting steady and rapid economic development, taking into account all aspects, highlighting key points, and comprehensively implementing a package plan to promote steady and rapid economic development. "Large-scale increase in investment, the implementation of a total of 4 trillion yuan of two-year investment plan, of which 1 is planned to be added18 trillion yuan, the implementation of structural tax cuts, expand domestic demand; We will carry out the adjustment and revitalization of the industrial plan on a large scale to improve the overall competitiveness of the national economy. vigorously promote independent innovation, strengthen scientific and technological support, and enhance development stamina; We should raise the level of social security by a large margin, expand employment in urban and rural areas, and promote the development of social undertakings. ”
The enlightenment of the subprime mortgage crisis to China: First, it is necessary to strengthen financial supervision, prevent the excessive development of financial derivatives, and prevent the excessive expansion of financial business. It is necessary to selectively study, develop, and utilize financial derivatives, not blindly copy and copy, but to put the risk control of financial institutions in the first place, so as to prevent excessive financial expansion and the formation of a bubble economy. Second, it is necessary to improve the treatment of laborers, expand domestic demand, and reduce the impact of exports on China's economic development. The expansion of domestic demand is mainly to increase the income of the wage earners, rationally allocate the proportion of labor products between laborers and factors of production, and increase domestic demand. The third is to gradually realize the transformation of the economic model and achieve sustainable development. Fourth, it is necessary to adopt a prudent monetary policy to prevent rapid inflation. Fifth, it is necessary to ban profiteering industries and control the profit margins of industries.