The United States, Europe and Japan’s economies have come into winter and people are expecting spring in China’s economy. Even Treasury Secretary of the United States Henry Paulson thinks so. He paid a visit to Beijing recently, asking a Christmas gift from China.

Both the host and the guest were kind to each other but China is no Santa Claus, so there’s no Christmas gift.

Paulson also hoped for a Renminbi appreciation so that American products could enter the Chinese market. China responded: "Sorry, I’m now having a hard time as well."

As Paulson’s plane landed in Washington, the Renminbi fell lower.

In the past, Americans spent while Chinese make money. If Americans had no enough of money, Chinese (included Taiwanese, Hongkies, Singaporeans, Japanese and Indians) would "give" them money.

"Even if they could survive, they would have to cut wages."

Americans issued bonds and printed US dollars while Chinese purchased bonds and used US dollars as foreign exchange reserves.

Americans could buy Chinese products only when they had money while Chinese tried to manufacture more and export products to the United States after they have entered the US market.

Economist Niall Ferguson has created a new term – Chinamerica. It is very symbiotic as the two countries cannot do without each other. So, that is how the world factory is built and how the world economy is operated. When the United States economy fails, China will first come to their mind, they hope that China can save the situation. The problem is, if there is a problem to the United States, China will as well suffer.

A friend of mine just returned from Shenzhen and Dongguan. He said that he had never saw such a bleak and chilly winter, of course, he was referring to the economic winter.

Tens of thousand of factories and enterprises face bankruptcy while millions of people lost their jobs.

Many factories looked normal during the day but in the middle of the night, a number of trucks came to remove valuables. The next morning, employees and suppliers were stunned when they saw the empty factory. It turned out that the owners had run away.

The United States economy downturn resulted in no order for Chinese factories, coupled with rising wages and raw material prices, bad market and not collectable debts. The vicious circle made it hard for enterprises. Even if they could survive, they would have to cut wages.

It would be hard to go back to the high-growth of an average of more than 10% in the past 30 years. Unemployment will as well hit social stability.

We are not sure yet whether the RMB4 trillion bailout measure of the Chinese government is effective. Let’s just leave it to Superman to save the world!