Made In China: The Next Global Recession
Byline: Rana Foroohar
The world has gotten richer, but it's also more interdependent - and likely to suffer
The Chinese stock market had been open only 3½ hours on the first trading day of the year when it began to implode. A sharp depreciation in the Chinese currency and bad news from the manufacturing sector prompted a rapid plunge in stocks. The 7% drop was so severe, it triggered so-called circuit breakers - electronic hand brakes of sorts - that stop trading if stocks tumble too quickly. The brakes were supposed to halt panic, but instead they spooked the financial world. London, New York City and other global markets dipped sharply after they opened as nervous traders mulled worrisome cues from the world's second largest economy. Many remembered keenly similar China-bred market turmoil last August.