How China’s property market crash affects Australian iron ore exports
China’s property market is in ruins but now it’s “doubling down” with a risky move – and the impact on Australia could be catastrophic.
When the mining boom kicked off shortly after the impact of the global financial crisis began echoing around the world, some believed that it would last for decades and provide Australia with a veritable magic pudding of economic prosperity.
What many didn’t realise at the time was how quickly China would grow and what a huge role the property sector would play in Beijing’s strategy for the Chinese economy.
Between 2011 and 2013, China used more cement than the United States did in the entire 20th century, as it built homes for tens of millions of people and expanded its infrastructure at the fastest pace in history.
But all this growth has come at a cost, the Chinese property sector now accounts for almost 30 per cent of Chinese GDP, a figure higher than even the United States in the…
