Composite Technology Corp. announced today that it has received a new conductor order from Far East Composite Technology Company, a subsidiary of Jiangsu New Far East Cable Corporation. The order calls for a single core size with associated hardware to be used on a 240 kilometer transmission line in China’s Hubei province.

The company underscored the significance of the order as it signals the recommencement of order flow for new projects in China. Although the second half of 2008 realized a drop off in orders as a result of the impact of the Summer Olympics in China as well as the subsequent holidays, starting in mid-October transmission line projects resumed and the backlog of suspended projects was addressed.

According to the press release, the continuation of orders advocates that the Far East is working through the end of the backlog projects and is anticipating new projects for 2009. Under terms

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In 1971 a nuclear physicist Ralph Lapp used the phrase “China Syndrome” to describe what might happen in an extreme example of a nuclear power plant meltdown. His theory was that the molten core of the reactor might be so hot and toxic that it would burn through the floor of the power plant and sink through the earth’s crust before exiting the other side of the earth through China.

This has never happened in the various nuclear accidents, but it’s a powerful idea that spawned the 1979 movie called The China Syndrome, which was released just 12 days before an accident at the Three Mile Island nuclear power plant in Pennsylvania.

I only mention it because the idea captures quite nicely the potential economic impact here of a Chinese economic slump. New Zealanders underestimate the impact of Chinese economic boom on the global economy generally and on our own economy.

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China’s once-rampant inflation has cooled to its slowest pace is 22 months, opening the door for aggressive interest rate cuts that could potentially kick-start its economy back into high gear.

China’s consumer price index for November climbed 2.4% for the year, a sharp drop from the 4.0% posted in October and the fourth consecutive month-to-month drop, its National Statistics Bureau said today (Thursday).

Though not ideal for China’s overall economic growth, the silver lining is that falling consumer prices open a window to take a hatchet to the 5.58% benchmark interest rate, which would pump billions back into the economy and encourage banks to boost lending.

“A worst-case scenario for deflation would see producers cutting prices, suffering lower margins and slashing wages, which would eventually damp consumption,” Li Wei, an economist at Standard Chartered Bank Plc in Shanghai, told Bloomberg.

Clothing prices fell 1.7%, and transportation

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China is not immune to this global recession, says John Crooks. And as the ‘world’s manufacturing plant’ stumbles, it will take down many others with it. Emerging economies that relied on China buying raw materials will be hit hardest. And any developed nation with exposure to these markets will be dragged down too.

This from The Sovereign Society:

If you want to know how far this recession has stretched, look no further than China.

Up through this year’s Olympics, China seemed to be well on her way to becoming the next global economic kingpin. And with good reason.

China has had the fastest growing economy in the world for decades. The Chinese government has amassed trillions in reserves, while building up a trade surplus just last year of US$262.2 billion.

But lately, China’s fundamentals have been breaking down, one by one, like massive dominoes…

Manufacturing in China just shrank by its largest margin EVER. China’s ...

Even with the Beijing Olympics, the number of foreigna title=travel target=_blank href=http://www.google.com/hostednews/afp/article/ALeqM5hD6cTC0Up--0-iIDN_wtIh60Zi8A tourists traveling to China dropped/a by 1.9% in the first 10 months of 2008. brbrThat surprises me, but the Chinese National Tourism Association thinks it will get even worse next year.brbrForeign visitor arrivals are sure to decline next year as a result of the global economic slowdown , so we must focus our efforts on stimulating domestic demand. brbrThat may put pressure on travel-related companies in China.

Not too long ago it seemed that everybody loved China.  It was a panacea, a magic bullet, the answer to every question. How can the US avoid recession? China.Why are the stock markets racing higher? China. Why is oil over $140 a barrel? China.You may have noticed that all this cheerleading has gone very quiet, very quickly.

The economists that prophesied China would become the world’s biggest economy by 2015 have changed their tune. Those that recommended investing in China have quickly gone broke.

Believe it or not, China could be next on the credit crunch’s hit list.

The City still doesn’t buy it though. To quote arch-bear Albert Edwards:

“The consensus still touchingly believes that despite a deep economic downturn in developed economies, continued rapid emerging market growth will keep overall world growth resilient.

“My view is that outright contraction of global growth is entirely possible next year.”

I think he’s right. A sharp slowdown

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Enough American companies are eager enough to get a marketing foothold in China that a title=tv target=_blank href=http://seekingalpha.com/article/107291-an-unexpected-bright-spot-for-tv-advertisers-in-china?source=emailTV advertising rates/a are rising. brbrAccording to CNBC, TV advertising rates in China are 10% higher than they were a year ago. And that is even AFTER the Beijing Olympics. And overall dollar spending is up 11%. brbr

NYT: A Sea of Unwanted Imports November 19, 2008

By MATT RICHTEL NYTimes

LONG BEACH, Calif. — Gleaming new Mercedes cars roll one by one out of a huge container ship here and onto a pier. Ordinarily the cars would be loaded on trucks within hours, destined for dealerships around the country. But these are not ordinary times.

For now, the port itself is the destination. Unwelcome by dealers and buyers, thousands of cars worth tens of millions of dollars are being warehoused on increasingly crowded port property.

And for the first time, Mercedes-Benz, Toyota, and Nissan have each asked to lease space from the port for these orphan vehicles. They are turning dozens of acres of the nation’s second-largest container port into a parking lot, creating a vivid picture of a paralyzed auto business and an economy in peril.

“This is one way to look at the economy,” Art Wong, a spokesman for the

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Highlighted stocks include Baidu.com (BIDU), Sohu.com (SOHU), United Online (UNTD) and Yahoo (YHOO).

Key Points: Despite the resignation of Jerry Yang, forecasts are trending downward for Yahoo Other Internet companies are doing well, however, such as Sohu.com and United Online

Without Merger, Few Positive Catalysts For Yahoo Over The Short-Term

Yesterday, Yahoo (YHOO) announced the resignation of Jerry Yang from the CEO post. The announcement was met with cheer as shares rose by nearly a buck to $11.55.

Playing a role in the upward move were speculators hoping for renewed merger talks with Microsoft (MSFT). The problem is that there is no guarantee that a merger will occur.

Without a merger, there are few catalysts for the stock. Naming a well-respected outsider as a CEO might help, but the company is struggling with both tough competition and a weak economy.

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Home Inns is the Howard Johnson of China and they gave an interesting view of Chinese spending patterns.

"We didn’t see a very significant impact by the economy, global economy or the slow-down of the Chinese economy…For the first months of the fourth quarter, we are still seeing the same trend the third quarter."

"Four to five star hotels occupancy and revenue have gone down since August. I think mainly it’s caused by a global economy… and also the very strict Olympics visa issue… I think in 2009 the high-end; like four, five-star hotels will be impacted by the high-end customer reductions. But budget hotels… still haven’t seen any… significant change in the market." 

In the U.S., we might refer to this as the Wal-Mart trade but what it means is that the high end is suffering while budget brands are thriving.