China is facing some serious internal issues related to the global slowdown that is underway. Growth is certainly slowing in China as a direct result of weakening global demand for its products. This poses some significant problems for the Chinese economy since it is widely believed that China must maintain a 7-9% annual increase in GDP to maintain employment stability. Last year growth was almost 12% and has been double digit for many years. Forecasts for 2009 have been as low as 5-6% up to the minimum levels in the target range.