China is known for its growing economy at the cost of offering cheap labor sources for duplicating the products. China is widely known as the photocopy machine of the world, experts in duplicating the known products. In order to meet the massive requirements pouring in from the every corner of the world, China has millions of manufacturing units producing various types or original and duplicate goods throughout the day. Besides duplicating, many companies are assigning them the production work of their desired products. The Chinese goods are known for their cheap quality and prices and most people avoid it due to the malpractice in manufacturing. They have produced substitute items for every productive material and they are widely using those elements in manufacturing cheap products. They also produce quality products under the strict specification of the principal. China is the largest populated place and due to the cheap labor standards there, many manufacturers have shifted that manufacturing units in china in order to take greater advantage of the easily available labor. China offers skilled and unskilled labor for every manufacturing unit. China largely depends upon the production contracts awarded from the western countries mainly Europe and US. Since they don’t have their own specific productivity, they have to depend on these countries largely. So when these countries are affected by their created recession, China also got affected equally since there was no more production orders offered to china from other countries. As their own productivity, china has their own porcelain and handicraft products but that comes under the luxurious goods and demand for these types of products is always limited in the world. Most Chinese production houses are manufacturing various products as per the orders from the other customers. In this process they failed to generate their own identity for particular specialized products. Today China is also facing the recession despite the claims from their government that they maintain stable economy.

Due to the recession, most manufacturing companies have to retrench their work force because of lack of further manufacturing orders. China can boast of having the largest work force in the world and during the joblessness the workers are holding their purchasing power. In this situation, the commercial activities in the market slow down to a great extent. The economy and GDP declines remarkably and recession is experienced in every sector of life.

The major reason of Chinese recession is falling exports. Declining power output and shrinking manufacturing are major responsible elements for the Chinese recession. A year ago, China’s leaders were worried about inflation and rising prices and they were struggling to control on the rate of interest. The symptoms of crises were observed during the recession 2001 and recession 2002 and the lean phase continued till the extended period of 2003. The period from 2001 - 2003 recessions was quite crucial for Chinese economy but they had very faint chances of coming out of this disastrous phase. There is a point to be made that china’s trade figures were highly deceptive as many components that had to be imported to fabricate its manufacturers in the various areas of production. If China can shift its production to supply internal markets then its profit would be improved and china can recover from the state of recession.