The Chinese government is addressing the worldwide economic crisis by investing more than $600 billion in infrastructure and other public works. This seems to indicate that China is moving even faster to spend it's huge surpluses on internal development rather than US debt. Over time this will be a good thing, but in the short-term it may mean more expensive debt for American consumers and the government.
It seems the impact on our business in the short-term will be minimal. Much of the Chinese economy will be export-based for quite some time, although the trend is certainly toward domestic consumption. As I've mentioned before, OPS America will need to adjust to the changing landscape by looking in new regions (for us) of China and by focusing more on complex projects that fit us well. We also will begin to help our partner factories improve their productivity. This will be the best option for continued viability of factories in Guangdong Province.
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