dnoblett Posted October 22, 2008 Report Share Posted October 22, 2008 http://i.usatoday.net/_common/_images/usat_logo2.gif SHAOXING, China ¡ª In the good old days ¡ª oh, three months ago ¡ª Tao Shoulong would prowl the streets of this ancient city in his Mercedes-Benz. His wife and partner, Yan Qi, would cruise around in her Toyota Land Cruiser. Together, they would drink into the night with clients, suppliers and creditors, hatching plans to expand their Zhejiang River Dragon Textile Printing & Dyeing Co. Tao built River Dragon from a start-up with four employees into one of China's biggest textile printing firms in just five years. He had even grander dreams: He wanted to see his company's stock trade on Nasdaq alongside the likes of Microsoft and Intel. The dreams are dead. River Dragon shut down on Oct. 7. Tao and Yan have vanished, leaving behind more than $290 million in debt and a lot of anger in this city 140 miles south of Shanghai in the Yangtze River Delta. The company's demise put 4,000 workers on the street and jilted hundreds of suppliers and creditors. The speedy rise ¡ª and speedier fall ¡ª of River Dragon is a depressingly familiar story in China these days. Thousands of Chinese factories have shuttered in the past year, done in by: •An export-killing global slowdown that began with the collapse of the U.S. housing market and the ensuing financial crisis. Local textile merchant Fang Xingquan, a River Dragon creditor, is among many who believe a sharp drop-off in exports was a key factor in the company's demise..... MORE.... Link to comment
Stepbrow Posted October 22, 2008 Report Share Posted October 22, 2008 In the past China only knew of the upside of capitalism. Now they will be learning about the downside. To clarify, I mean the business cycle of capitalism. Link to comment
lostinblue Posted October 22, 2008 Report Share Posted October 22, 2008 4000 workers,290 million in debt in just 5 years. How many people have the ability to manage this much growth in a company? It is easy to blame the economy when other factors if the truth were known were involved. The headache in dealing with this company would be more than anyone would want. IF you were interested in being successfull years into the future. Link to comment
IllinoisDave Posted October 22, 2008 Report Share Posted October 22, 2008 This was on ABC WNT yesterday: http://abcnews.go.com/video/playerIndex?id=6083417 "half of China's toy factories, more than 3,000 have closed this year." Those are astoundingly numbers. Imagine how many workers that translates into. Link to comment
Guest ShaQuaNew Posted October 23, 2008 Report Share Posted October 23, 2008 Too bad they didn't have there business in the US where the government would have propped them up. So true on the one hand, but so sad on the other. I mean that the US government has repeatedly bailed out larger companies when they get into financial trouble. Forget the fact that many of them got there by making bad business decisions and failing to keep up with the competition. China is indeed experiencing a slow-down. This time of year is usually very busy filling orders for US consumers. I guess many of those Americans can no longer use their credit cards, and they sure can't sell their houses to pay off their debts. Link to comment
david_dawei Posted October 23, 2008 Report Share Posted October 23, 2008 It seems the proverbial: Those who live by the sword, die by the sword... Link to comment
Guest ShaQuaNew Posted October 23, 2008 Report Share Posted October 23, 2008 It seems the proverbial: Those who live by the sword, die by the sword... So, let's see if I get your drift. If you spend money, you'll be killed with money? Like, someone throwing a heavy box full of money at you? Link to comment
rogerluli Posted October 23, 2008 Report Share Posted October 23, 2008 It seems the proverbial: Those who live by the sword, die by the sword... So, let's see if I get your drift. If you spend money, you'll be killed with money? Like, someone throwing a heavy box full of money at you? Let's try this one... If your scheme is to get rich quick... You may get poor just as quickly... Link to comment
Guest ShaQuaNew Posted October 23, 2008 Report Share Posted October 23, 2008 (edited) It seems the proverbial: Those who live by the sword, die by the sword... So, let's see if I get your drift. If you spend money, you'll be killed with money? Like, someone throwing a heavy box full of money at you? Let's try this one... If your scheme is to get rich quick... You may get poor just as quickly... Well, I'd like to get rich quickly rather than slowly. Maybe if someone throws a box of money at me that can happen? Edited October 23, 2008 by ShaQuaNew (see edit history) Link to comment
rogerluli Posted October 23, 2008 Report Share Posted October 23, 2008 It seems the proverbial: Those who live by the sword, die by the sword... So, let's see if I get your drift. If you spend money, you'll be killed with money? Like, someone throwing a heavy box full of money at you? Let's try this one... If your scheme is to get rich quick... You may get poor just as quickly... Well, I'd like to get rich quickly rather than slowly. Maybe if someone throws a box of money at me that can happen? Like you're standing there all by yourself and the Brinks truck drives by and the back door opens and a couole of bags fall out... But seriously everyone laopo has talked to recently in China says that business is down...women's clothing manufacturer, car sales, advertising, house sales...all her friends report the same bad news... oh wait...the police report business is up... Link to comment
Guest ShaQuaNew Posted October 23, 2008 Report Share Posted October 23, 2008 Like you're standing there all by yourself and the Brinks truck drives by and the back door opens and a couole of bags fall out... But seriously everyone laopo has talked to recently in China says that business is down...women's clothing manufacturer, car sales, advertising, house sales...all her friends report the same bad news... oh wait...the police report business is up... I agree. Lan tells me it's all over the news; both TV and print. Many factories are closing, and many people are losing their jobs. Hard to tell whether it's temporary or permanent. Everyone is being very careful right now. Link to comment
Corbin Posted October 24, 2008 Report Share Posted October 24, 2008 It seems the proverbial: Those who live by the sword, die by the sword...Ah, but the pen is still mightier than the sword..... Look at how many times the pen has brought death to those under the control of people like Hitler and Stalin. The sword is the tool used to bring about the death ordered by the pen holder....... Link to comment
JimS. Posted October 24, 2008 Report Share Posted October 24, 2008 Like you're standing there all by yourself and the Brinks truck drives by and the back door opens and a couole of bags fall out... But seriously everyone laopo has talked to recently in China says that business is down...women's clothing manufacturer, car sales, advertising, house sales...all her friends report the same bad news... oh wait...the police report business is up... I agree. Lan tells me it's all over the news; both TV and print. Many factories are closing, and many people are losing their jobs. Hard to tell whether it's temporary or permanent. Everyone is being very careful right now.From what I heard on the BBC today is that workers are asking for higher wages at some of these factories. Instead of giving them a raise, they are closing the factories. You may see factories popping up in other areas were they think they can pay a lower wage. Link to comment
rogerluli Posted October 26, 2008 Report Share Posted October 26, 2008 http://www.rfa.org/english/news/china/labo...2008121243.html More and more factories closing, more and more people out of work, more and more SOCIAL UNREST... Saw a segment on Chinese news where 2,000 people had shown up to apply for ONE government job... Link to comment
Guest Mike and Lily Posted October 26, 2008 Report Share Posted October 26, 2008 Too bad they didn't have there business in the US where the government would have propped them up. But that's precisely the reason China has done so well economically up until now. Government has stayed out of business. Link to comment
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