Jul 3, 2013

Rudd’s right, China is having a mini-economic crisis

Kevin Rudd has changed Labor's economic tack, warning of peril ahead as the Chinese economy slows. He's right; China is having a mini-economic crisis. Interbank rates are soaring, banking habits are poor, and forecasts are souring.

Michael Sainsbury — Freelance correspondent in Asia and <em>Little Red Blog</em> Editor

Michael Sainsbury

Freelance correspondent in Asia and Little Red Blog Editor

In his first appearance as re-installed prime minister, Kevin Rudd dragged China front and centre into the Australian election campaign.

“The global economy is still experiencing the slowest of recoveries. The China resources boom is over … and when China represents such a large slice of Australia’s own economy, our jobs, and the opportunities for raising our living standards, the time has come for us to adjust to the new challenges,” he said in his first press conference as born-again PM.

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4 thoughts on “Rudd’s right, China is having a mini-economic crisis

  1. Matt Hardin

    Presumably there is still increasing economic activity in China if growth is 7% so there should still be demand for resources just not at the same rate. Why is there such a Manichean view of things? Surely we can go at speeds other than flat out and stop? Or is that too much for the geniuses that run the mining companies?

    BTW the stimulus spending in 2009 by all accounts saved us from recession. Keeping up demand in retail and activity in construction reduced unemployment and kept some activity in the economy. It did not “kick the can down the road”.

  2. Damien McBain

    I wonder if anyone measures the difference between the economic figures reported by China and the related activity levels in Australia? A cynic would suggest China reports what’s in its best interest to report.

    And Matt, there is always some activity in the economy, even in a recession. My uneducated contention is that BHP, Rio and China kept Australia out of the poo, not Rudd and his gigantic new public debt. We have no Telstra to sell this time…

  3. Matt Hardin

    I would agree that selling minerals helped the economy in the period 2009-2011. I just disagree that the stimulus was a waste and deferred the problem.

    (The expression “some activity in the economy” was a rhetorical device not meant to be taken literally.)

  4. Damien McBain

    On a lighter note, the direct stimulus payment was the subject of one of the funniest things I’ve ever seen on Facebook. It said:
    “I’m looking forward to being stimulated by Kevin Rudd’s package”

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