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 1/5^th 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 1/4^th 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 2^nd largest market will surely affect the countries connected to China. This is just a start and we never know where it will end.

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