Manufacturing in China reacts to global economic downturn

An article in the China edition of Knowledge@Wharton looks at the impact of the global economic downturn on manufacturing in Guangdong, China. According to "Restructuring Guangdong's Economy: Moving up the Value Chain as Exports Go Down":

"As Western consumers’ spending power has shrunk, orders have fallen and the pain inflicted on Guangdong’s manufacturers has intensified. According to official figures released in early January, as many as 62,400 companies went bankrupt and 600,000 migrant workers left the province in 2008. The situation continues to deteriorate on a daily basis. Local governments have been forced to compensate thousands of angry unemployed workers out of their own coffers...."

There is also an interesting article about development in China and some of the fundamental differences between conducting business in China and in India: "What Will Be the Next Chapter in China's 'Impressive Story' of Development?"