How much do you know of the economic scenario of PRC or Peoples’ Republic of China? Well, certainly the answer of this question, if asked to any commoner instead of a student of international economics or history, becomes negative. Truly speaking, we have at all no information of PRC although it happens to be the fourth largest economy in the world after the United States, Japan, and Germany with a nominal GDP of US$3.251 trillion (2007) if measured in exchange-rate terms. But the position of the same China becomes second with a GDP of over $7.1 trillion (2007) when measured on a purchasing power parity (PPP) basis. There is no doubt in it that China is the proud possessor of the fastest growing major economy in the world.
The inclusion of the principles of free market in a regimented country has been instrumental in the profound economic success of China. It should be informed China’s GDP has grown at an average 9.9 percent a year since 1978 (when it first incorporated free market economy but with a socialist flavor).
You may be wondering why all these are said. Well, this is necessary before we start discussing the current global economic crisis and its fallout on China.
How is China behaving in this ongoing crisis? According to the latest information, the whole of the country is experiencing the brunt of the situation. The industries are really in bad shape and the greatest victim has been the realty sector. This stagnancy can be found through assessing the condition of Centaline China, the country’s largest real estate brokerage firm. According to the topmost management of the company it may perhaps perceive a 20 percent drop in profits for 2008. The reasons are the same and they are dwindling transactions. If this is the condition of the most important company, the condition of others can be easily realized.
What’s more for the sustenance of the business, the company is thinking over the prospect of dismissal of employees and termination of operations (of loss making outlets).
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