More than 60 percent of businesses in Wenzhou, China, have slowed or stopped production since June, Morning Whistle reported July 27, citing a report by the Zhejiang Provincial People's Congress. According to the report, large businesses' profits declined by about 24 percent, medium-sized businesses' profits contracted by 18 percent and small businesses' profits declined by 14 percent. Companies in Zhejiang province have seen their average net profit decline by about 19 percent since January, according to the report.Now this isn't one of the interior backwater cities, its a coastal town and one of the larger economic centers in the area, it ranks 34th, and a population of over 9 million, the fact that a coastal city is stumbling so hard indicates that the Chinese economy overall is struggling. In fact it has gotten so bad that even some analysts are saying the Chinese are in the middle of a hard landing. Now whether we see their economy slowly unravel like Japans or collapse under its own weight, like the Soviet economy, is something that remains to be seen.
Read more: China: Business Slows In Wenzhou | Stratfor
At this points we should all be taken bets. Who will hit the wall first? The US, Europe, China, Japan, or some other BRIC nation?