Trouble in Toyland: U.S. recession jolts China – Economy in Turmoil- msnbc.com

Declining U.S. orders already have contributed to the closure of at least 3,600 toy factories since the beginning of 2008, according to the Chinese government, leaving hundreds of thousands of Chinese workers suddenly out of work in this sector alone. Some of the shutdowns have triggered violent protests, a situation that could worsen if the Western recession drags on through 2009, as many economists are predicting.

“Unemployment in China could deprive a lot of people of their lifeline,” says Hu Xindou, an economics professor at the Beijing Institute of Technology. “So it could trigger social instability or even shake the rule of the Communist party.”

As bad as many of these factory jobs probably were (low pay, unsafe and unhealthy working conditions, anti-labor union) it’s a bad situation because these workers have no where else to turn to. Obviously, I’m not a fan of the authoritarian Chinese government so this protest could be the start of something that will “shake their rule” but what would replace it? I’m getting ahead of myself I realize. It looks like the government is going to have to do some spending on social programs and find a sector to reintergrate these workers into. Maybe putting them to work in the “greening of China” would be one option.