US Slowdown Hits Asia

The NY Times reports:

At the Evergreen Knitting Company in Ningbo, China, orders from the United States for T-shirts and sweaters abruptly dropped 20 percent this winter. The company expects some rival Chinese knitwear producers to shut down altogether.

“We anticipate that this year, 10 to 20 percent of the knitwear factories will have to close due to the inability to compete,” said Sean Zhu, Evergreen's sales manager.

In response to the downturn, some companies are pursuing remedies that will affect economic output, like Aigret Industries, which has lengthened next month's Chinese New Year vacation for its workers to 20 days, instead of the usual 10.

Others are investing in more technological research and developing new models, like the Xigo Electric Company in Zhongshan, China, which manufactures air-conditioners and liquid-crystal display television sets.

“We really felt the impact of the slowdown in the U.S. during the second half of 2007,” said Stan He, a Xigo sales manager. “Orders were generally down by 10 to 20 percent relative to the same period a year ago.”

To read more:

http://www.nytimes.com/2008/01/25/business/worldbusiness/25export.html?_r=1&th=&emc=th&pagewanted=all&oref=slogin