Chinese Snowstorms Chill Global Economy

January 30, 2008 08:07 AM
by findingDulcinea Staff
Analysts fear that losses from China’s severe winter storms will further weaken an already shaky world economy.

30-Second Summary

The worst snowstorms in 50 years have left millions stranded in southeastern China and at least 50 dead since the storms began on Jan. 10.

Compounding the situation are widespread power shortages and the millions of people traveling in preparation for Chinese New Year. Around half a million people are stranded in the southern city of Guangzhou because of a blocked railway line.

Economic production has taken a hit as well, leaving analysts worried about inflation and an economic slowdown. Weather-related losses are estimated to be over $3 billion.

contributor Simon Elegant writes that the storms could not have arrived at a worse time. An economic downturn or social unrest in China might adversely impact a world already shaken by trouble in the U.S. economy. 

The Australian says that there are signs that the Chinese powerhouse is already slowing. That will make it harder for the storm-struck country to weather the problems of a tempestuous world economy.

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Opinion & Analysis: China and the global economy


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