China’s economy is slowing down- Effects on other countries

-



China’s economy is slowing down and it is already showing the effect on China's growth and other countries as well.

Trade War

The trade war between China has a big impact on the sales of China, people are less likely to purchase the Chinees products so the retail growth is 8.1% in November which is the slowest rate in last 15 years.

Exports

As the consumers buying less on high-end smart-phones so China is cutting down the producing and exporting more semiconductors.

Countries like South Korea whose 1/5th of exports are from semiconductor have a major impact on it. SK Hynix the largest semiconductor manufacturer after Samsung has a showed a reduction in sales of $385 million from last quarter.

Companies like SK Hynix are struggling with the production whereas the workers have suffered through lower salary, fewer overtime rates and also less bonus in their jobs.

OIL

China’s oil demand is very stagnant until this year and we have seen that due to fewer exports China is a kind of dependable on their oil refineries.
The state-owned companies are now started exporting oil to the rest of Asia. So China is in competition with Singapore and South Korea who are the biggest exporter of oil and most importantly these two are heavily dependent on exports of oil.

That’s the reason the oil prices are going down and the Singapore market has reduced their profit margin to $1.3 per barrel.

Education and tourism

Reposts say that in Australia every 1/4th of money was spent by China in 2017 but with the fact that it attracted only 15% of tourism from China this year.

In 2017, 54% college tuition fees of colleges in Australia was from China, But in the survey, it says that it is not able to attract the students as it was last year.

Sidney airport in Australia already reported a  decrease in Chinees coming to Australia.

This is already started impacting Australia as lower housing prices and lower wages costs in these areas.


Slowing down of the World’s 2nd largest market will surely affect the countries connected to China. This is just a start and we never know where it will end.






Please tell us your thoughts and ideas in this subject so it will help us out and if you want to write something interesting please write in our guest blog and we will post your blog with your name and photo.

Comments

Post a Comment

popular posts

Why Dunkin donut failed in India

-
Image
Dunkin is a very popular brand in all over the world there are more than 12000 restaurants in 46 countries but there is one country where the could not take the market share and that is India now why it is like that? In 2018 it has closed half of its stores just because of lack of profitability and operational efficiency.                In 2012 Dunkin lunches its 1 st time and merged with Jubilant food works, the franchise that helped that helps Domino’s pizza to India one of the top brands in the country. Now Dunkin started from the strategy of a heavy breakfast that starts your day, the strategy that helped it everywhere but that is western culture. Soon they realized that Indians are not that interested in routine breakfast. Indians don’t use to go somewhere special and grab their breakfast rather than they used to prefer to have a light meal in their home. The difference in consumer behavior ...
Read more

The story when Nike was just a startup

-
Image
Nike is the biggest sportswear company that reached a $100B company over 50 years, but wait do u know how the company started how a small idea to sell a sports shoes ended up with a large company? Let's know about it. It was the time of 1961 and Phil Knight who was the founder of Nike was just graduated from Stanford University with a great idea which was going to change his life. He was a distance runner in his early life and have an idea that what should be the sports should be like and he gradually saw that how the Japanese camera replaced the German cameras so he thought that the same thing can be done with shoes like Puma and Adidas which are extremely popular at that time. But he has 2 major problems to go on this idea neither he had any connections in Japan nor the experience of how to start a company. For that idea also he has to import shoes from Japan to America but he has no experience in it. But he can’t through his idea, he goes to Japan as a touri...
Read more

Netflix struggled to penetrate the Indian market

-
Image
              Netflix is a very big online streaming giant all over the world and with the fact that about 70% (73 Million) of its earning is from the international market. It has expanded more over in 190 countries but it struggles to enter the large market in India.                In 2016 Netflix and Amazon prime videos launched in India to take advantage of a drastic decrease in data prices (Thanks to Jio). So the Data use which was very expensive suddenly was available to everyone at a cheaper price. More than 35 streaming platforms and thousands of websites came to the Indian market to grab the market share. India and internet Market                India has become the 2 nd internet market after China where we found that people of India are more likely to watch movies and TV show.  ...
Read more