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.