Evergrande: Impact of China’s property market crash on Australia
The next six months will test the risky decision that Australia made to rely on this one thing to boost its economy.
It was once said the fortunes of the Australian economy rode on the back of a flock of sheep, so great was Australia’s reliance on exports of wool. But in the 21st century, the Australian economy’s fortunes now ride on the back of a 200,000 ton bulk carrier filled to the brim with the nation’s bounty of coal, iron ore and other minerals.
In early 2020, as the pandemic sent Chinese cities into the world’s first Covid lockdowns, Australia’s strategy of reliance on China appeared to be on increasingly shaky ground.
However, like so many other times in recent history the Lucky Country’s good fortune once again came to our aid. As the Chinese government spent big on stimulus, Beijing once again came to Australia’s rescue, with the Middle Kingdom at one point accounting for almost half of all Aussie exports.
But…
