The worth of financial assets would fall by one fifth on average, and by one quarter in Australia. An end to trade across a bamboo curtain would hit Australia, since we export more resources to China than anywhere else and we import more goods from China than anywhere else.
We show that a slowdown in Chinese economic activity of around 5 per cent could result in a decline in Australian GDP of up to 2½ per cent, depending on the nature of the scenario. There is potential for the exchange rate and monetary policy to provide some offset to these effects.
As a result, if the United States and other countries were to stop trading with China, it would disrupt global supply chains and cause economic disruptions in many countries.
Trade and investment
China is Australia's largest two-way trading partner in goods and services, accounting for nearly one third (32.2 per cent) of our trade with the world.
Resources and energy also play an important role in the China-Australia investment relationship. China is an important source of foreign investment in Australia. Foreign investment in Australia means greater infrastructure, more productivity and more jobs for Australians.
Australia is China's sixth largest trading partner; it is China's fifth biggest supplier of imports and its tenth biggest customer for exports. Twenty-five per cent of Australia's manufactured imports come from China; 13% of its exports are thermal coal to China. A two-way investment relationship is also developing.
China's economy, the world's second largest, is critical for Australia's fortunes and those of many of its neighbours. China buys about a third of Australia's exports, equal to those shipped to Japan, South Korea, the US and India combined.
Their investments increased by 0.5 per cent, bringing Chinese interests' total area of Australian agricultural land to 9,199,000 hectares or 2.4 per cent over the period to June 2019.
Australia has plentiful supplies of natural resources, including the second largest accessible reserves of iron ore in the world, the fifth largest reserves of coal and significant gas resources.
China-Australia In 2021, China exported $70B to Australia. The main products that China exported to Australia are Computers ($4.97B), Broadcasting Equipment ($4.09B), and Other Furniture ($1.82B).
Why it matters: The United States imports roughly half a trillion dollars in goods from China, including clothing, shoes, electronics, furniture, and household appliances. Those imports help improve the lives of many Americans, particularly those in low-income households who benefit from lower prices on everyday goods.
It supports US jobs.
While expanding foreign trade can disrupt US employment, trade with China also creates and supports a significant number of American jobs. Exports to China support over 1 million US jobs, and Chinese companies invested in the United States employ over 160,000 workers.
One of the main reasons why we buy so many products that have been produced or supplied from China, is because they can offer a lower manufacturing cost.
Australia's GDP is expected to grow by 1.6 per cent in 2023, followed by 1.7 per cent in 2024. Despite the bleak outlook, Treasurer Jim Chalmers is confident Australia will avoid a recession. The state of Australia's economy depends largely on the RBA's cash rate decisions.
Growth in gross domestic product (GDP) is forecast by CBA to come in at 1.1% this calendar year, significantly lower than the 5.2% in 2021 and 3.6% last year when the country began emerging from the economic and social impacts of the Covid-19 pandemic.
Although Australia has avoided the worst effects of a recession for almost 30 years, 2023 may be the year of a recession - if one thing keeps rising. With GDP on an upward trajectory, a 0.6 per cent uptick to be precise, and unemployment at an all-time low at 3.5 per cent - we're in a good economic situation.
Since that time, United States has been the most important security ally. The close security relationship with the United States was formalized in 1951 by the Australia, New Zealand, United States Security (ANZUS) Treaty which remains the cornerstone of Australian security arrangements.
In 2017, a major poll showed that New Zealand was considered Australia's "best friend", a position previously held by the United States.
Australia is a fantastic place to live, even for foreigners. There aren't only advantages to living in Australia, but they outweigh the disadvantages. I love the climate, work-life balance, safety and the wide range of outdoor activities that I can enjoy every weekend.
while Merredin locals love it, others are outraged it's owned by a state-run Chinese company. Merredin is home to China's aviation training industry. It all began in 1995 when China Southern WA Flying College landed 260km east of Perth, buying the local airstrip from the shire.
China's Luye Medical bought hospital operator Healthe Care and now owns 34 hospitals across Australia, making it the third largest operator in the country. It's also one of Australia's largest providers of psychiatric services.
Australia has a GDP per capita of $48,700 as of 2020, while in China, the GDP per capita is $16,400 as of 2020.
Tokyo | China will boost domestic iron ore production by 30 per cent, significantly ramp up investments in overseas mines and strengthen scrap steel recycling under a plan designed to break Beijing's dependency on Australia's most valuable commodity export.