While the whole world is reeling under the pressure of economic turmoil, the world’s most populated nation has a story of its own to tell. China has suffered a lot implicitly due to the global economic crisis. Chinese goods are not so in demand anymore and the market is seemingly losing interest in China. Moreover, Chinese competitive edge is at stake and Chinese President Hu Jintao has warned the nation that China could face serious consequences of the global crisis.

The government has taken steps to avert a major crisis in the nation by announcing a stimulus package which is close to $586 billions. This, the president hopes, will take the country through turmoil safely. There also is a wide spread superstition of sorts that the growth rate must always be 7% and above if the Chinese economy must survive.

The growth rate has already fallen down from 9% to 8%. The banks have also announced heavy interest cuts and the situation looks rather grim for investors. However, with the Communist government taking steps to avoid any major fallout, there may be chances that china will remain almost unscathed.

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Via: BBC