According to the British Broadcasting Corporation (BBC), the Chinese economy is facing a major test. China recently released that exports dropped by 25% in February.
BBC business editor Robert Peston recently visited China’s coastal regions. According to his observations, the southern provinces, unlike Shanghai where the situation is still holding up, are near desperate. Many factories have shutdown; unemployment is rising. Due to reduced export demand, some companies have relocated to lower operating costs.
Southern China, as Peston sees it, has already fallen into a serious economic recession. However, official figures still provide an optimistic picture, stating that the economy is just taking a slower pace.