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The impact of the slowdown of the Chinese economy on Australia. There are strong indications that the Chinese economy is slowing down after three decades of rapid growth. Its rapid growth transformed...

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The impact of the slowdown of the Chinese economy on Australia.

 

There are strong indications that the Chinese economy is slowing down after three decades of rapid growth. Its rapid growth transformed not only China’s own economy but also had a huge impact on other economies in Asia and the world. China emerged as the ‘assembly center’ of production networks and has played a major role in the deeper integration of economies in this region.

 

Clearly a Chinese slowdown will have major impacts on the economies of this region. Also note that the Chinese slowdown is happening at a time when the global economy, including the major OECD economies, is facing difficult times.

 

 

The essay should focus on Australia and discuss the implications of the Chinese economy slow down on Australia.

 

The essay should describe, proving figures and data is necessary, the trade and investment linkages of Australia with China and the rest of the world, and how these relationships have evolved during the period of the ‘China boom’. It should then discuss how a slowdown in Chinese economy impacts on Australia through the various channels (trade, tourism, investment etc.), noting that there will be both direct impacts as well as indirect impacts. The indirect impacts come from the impact of the Chinese slowdown on other countries of the world, which in turn will impact on Australia. You should discuss what may be the impact on important economic variables such as, for example, the country’s real income, its balance of payments position, employment and investment. 

Answered 17 days AfterDec 07, 2017ECF2550Monash University

Solution

David answered on Dec 25 2017
30 Votes
Introduction:
If we look after the global financial crisis, China economy has boomed and the main benefactor of the wealth is Australia. From the attractive trade deals among the economic reforms in the sector of agricultural and mining, businesses of the Australia has been profited. But from few years backs China’s factory activities has been slowed down and employment has been declined so much quicker than normal. And it is indicated that economy of the China is not so much robust as it’s appears to be. Australian corporate has helped enormously from China’s financial boom. At present China is back flipping among rules that advocate for investment in substructure as the keystone of their economy, and a more consumer oriented economy. Though a focus on consumerism saw China’s economy sluggish and stand, the unexpected change back to an infrastructure based economy doesn’t unavoidably bode well. So that for the profitable business of Australia from supply of China, it is necessary to prepare for China’s Growth and slower their buying power.
In the numerous ways China’s slowdown would impact the Australia, there would be reduction of trade, they can leave the Australia with an oversupply of goods and there would be nobody to sell them to. With large investment of China in Australia and it’s approximately 28% of Australia export depend on the China, Australia is largely depend on the strong economy of the China. For the Australian economy it is important to China’s economic growth.
Trade Agreement between the Australia and China:
There is free trade agreement between the Australia and China, named “The China-Australia Free Trade Agreement (ChAFTA)” and it is forced on December 20th 2015. From this agreement Australian consumer will get 5% tariff on the Chinese product, there are also many tariffs available on many food products like beef, pork, fish and many others. It will help on the hospitality sector, tourism sector, joint ventures and other services.
Export dependency on China:
In the year 2009 China become the Australia’s biggest export market place. Earlier it was Japan. In 2009 total of products and merchandise exports to China was Australian dollar 42.4 billion from Australia. And it was 31.2% higher than the 2008. China is presently Australia’s supreme key export marketplace and has been since 2009-10.1 In 2013-14, China was largest export market in terms of goods and services, if we look in terms of the amount it was total value of the...
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