From our correspondent in China

When western people think about China, they often think about cheap products.This is because China products more than half of world’s clothes and small products with low labour costs. These products are sold all over the world. Therefore, China has a nickname as "The factory of the World". However, things have changed in recent years. There are more and more competitors in manufacturing market.

The boom started at the end of the 1980s, following the southern revolution. It is the first time that China opens its door to the world. After that in few years later, foreign visitors, business man eared their first barrels of gold. ‘Made in china’ start from then. Twenty years past, the processing industry is declining. One of the reason is cost of labour is not cheap any more. After that American people become to worry about the price of Christmas tree is rising. Following that, international traders were looking forward to cheaper processing market like Vietnam.

Economic recession happens in the southeast province in China, because of global economic environment. In last year, 50,000 factories closed down. The local government could not live on the rental land and factory. Rural workers prefer working in their own town instead of getting adventure in modern city. The government made a series polices to encourage local employment for example cut down the tax.

Now in southeast part of china, the foreign investment is reducing. Local people are trying to launch their own business. However, most of these small factories still lean upon international markets. Therefore, their devolvement is limited.