BLUF

Australia relies on the Chinese market for commodity exports, and how China deals with its economy will have flow-on effects on its trading partners.

Summary

This article makes the following points:
  • China's third-quarter GDP numbers show a dramatic slowing of activity.
  • Domestic policies have severely disrupted global supply chains. 
  • The COVID Delta strain, shortages of labour and container ships and port closures have created congestion in international supply chains.
  • Slower growth and high levels of inflation threaten stagflation.
  • The environmental restrictions and soaring coal and gas prices has caused factories to reduce their energy intake by reducing or stopping production.
  • China's property crisis of 30 million unsold apartments and many incomplete projects has discouraged buyers and destabilised the industry. This sector accounts for 30% of China's GDP.
  • The change in Beijing's policies has severely disrupted the $US100 billion private education industry/
  • China has cracked down on big technology companies. 
Learn more about China’s economy.

References