Factories Shut, China Workers Are Suffering

As the U.S and the world heads for an economic down turn, China; the world's factory has been hit hard especially in the Pearl River Delta area of southern Guangdong. The Pearl River Delta area is the area that includes the special economic zones of Shenzen and Zhuhai of Guangdong province, where many FDI factories are located. Due to the economic down turn around the world and lower consumer spending, the slow down of exports contributed to around 67,000 closing of factories across China over the first half of the year.
Often after shutting down the worker's remained unpaid and often took to the streets in protest. Many workers who leave the Pearl River Delta for Chinese New Year holidays do not plan to return and a higher number of people leaving the area has shown in the area's increasing train passengers, and many of them do not plan to return for work. Many of the FDI that closed down might not return or replaced by new FDIs due to cheaper labors found in places like Vietnam, and other countries with cheaper labor cost.
The Chinese government is punishing for policies that allow more consumer spending and a $586 billion stimulus package over two years was introduced last Sunday(largest ever in China) in hopes to upset this economic down turn.