Weighing the risks for Australia as China rebalances

By James Laurenceson

As the rate of resources and energy-hungry investment in China falls, commodities such as iron ore and coal will not fetch anything like the prices they did a few years ago.

Australia has a clear stake in China’s economic rebalancing: the latest trade data reveal the annual value of our merchandise exports to China now exceeds $100 billion.

Investment in the resources and energy sector will fall as current projects are completed – BREE notes that committed project investment is already down from a peak of $268 billion in April 2013 to $229 billion a year on.

Alan has been a trusted source of investment advice to Australians for many years, and in 2005 he founded Eureka Report - Australia’s #1 online investment report.

China’s rate of investment is only one factor that determines its demand for resources and energy.

They add that while the investment phase of the commodities boom lasted for roughly five years, the output and export phase will last decades.

Read more here: Business Spectator

    

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