Epic Economist For the past decade, China has been growing rapidly. Rapid urbanization and industrialization mean that China is in need of minerals and raw materials. And China’s development thirst has been fulfilled by Australia. Beijing is Australia’s largest trading partner, accounting for nearly one-third of Australia’s exports and one-fifth of Australia’s imports.
In 2019, China accounted for 82 percent of Australia’s iron ore exports. And guess what? Australian coal is home to China’s thermal power stations. But this economic bond is more complex than you think.
Australia is also a leading supplier of liquified natural gas to China. This year, the LNG exports are somewhere between 18-19 billion Australian dollars. And if you think this is just it. You are mistaken.
China has also become the engine of Australia’s services sector. Universities in Canberra, Melbourne, and Sydney are home to significant enrollments from Chinese students. As of June 2019, there are around 164,317 Chinese students completing their education on Aussie turf.
Australia might be on its knees And if the Chinese economy does not stabilize in the next few months, we are afraid it would be an economic winter in Melbourne, Canberra, and the entire of Australia.
Inflation is galloping and the unemployment rate is rising in China.
At first glance, you might argue that once things get right, Australia would be back to business. Some could also argue that this is short-term. And once Omicron is controlled, Chinese students and tourists would resume their pre-Covid spending habits.
But things might never go back to the normal. Especially when it comes to trade between China and Australia. The reason lies in China’s property market crash.
For the last 3 decades, the property sector has been the main fuel for the Chinese economy.
Despite the current geopolitical environment, a sudden decoupling from China would be a big mistake since it accounts for almost 40 percent of Australia’s exports. However, it would be wise for Australia to pursue a policy of trade diversion and look for alternative buyers.
For example, when China refused to buy Australian coal in 2020, it went to Indonesian markets. This created demand gaps in India, Japan, and South Korea, which was fulfilled by Australian coal. See, Australia needs to be smart.
Dark times await. The clouds of harsh economic winters will remain for a while.
For more info, find us on: https://www.epiceconomist.com/
It's getting progressively worse.
The economic hardship, unemployment and the loss of jobs caused by covid is enough to push people into financial venture's. I'm taking a trip into investing because I've lost so much during this pandemic.
China can't let Australia go unpunished
First
Save the Australian kangaroos! 🇦🇺🦘
Convid the SCAMdemic was made in a lab in Wuhan. Fowlcheat funded the research.
I don't know who needs to hear this! Stop relying on the government and savings. Invest some of your money if you want financial stability, the pandemic has thought us the importance of having several streams of income.
Ummm yeah this one I don't agree with, they couldn't off load ships due to the lockdown, everything was on a shut down last year, as china opens it requires what it requires, tourism and schools for both nz and aus lost all the Asian and Indian students due to both COVID and our own shut downs
So it's all because of a bat! I see.
We are in it together Australia as I drink a Fosters Beer 🍺 🇺🇸
Who needs coal when you have old tires.
Every economy relies on China so much it’s a joke that the world will shift production from there 😂
China will punish Australia . It’s a good news !
Bye bye Australia! 😂😂 🇨🇳🇨🇳🇨🇳🇨🇳
Damn Gina!
Impeach Biden now!
So… a genetically engineered virus is off the table?
………………………………AM
Holy bat shit Batman! 😶
Not to worry. Australia spent 500 billion and 2+ years pursuing COVID zero. And it's all borrowed, subject to those rising interest rates. So… Australia's wealth for decades has just been robbed. Good times.
china wont be supplying the entire west. its already started.
Все миллиардеры разорятся до нуля. Денежное дерево их бросило.
The W.H.O. has already proven many times that they can No Longer be trusted! Just like the American C.D.C. cannot be trusted either because they both are corrupted!!
Anyone that still thinks that COVID-19 came from a bat has been hiding under a rock for two years or is a shill for big Pharma
She built that company by herself?
As an Australian 🇦🇺 we are already in recession, looking down the barrel of a depression, the sanctions put on us by China in 2020, plus covid lockdowns, printing press $ running hot overtime all caused the inflation and now we’re all paying for it, not just Australia look at the USA, Canada, NZ, Argentina, many countries in Europe etc
We’re all going down faster than the titanic 😢 WW3 is here and in the early stages, wake up!