Write an essay to exam the impact of the slowdown of the Chinese economy on other economies in Asia and Australasia (Asia and Australia-New Zealand and neighbouring Pacific Islands) region.
– The essay should be in economic terms and views as this is an economic unit
– Points must include:
o Implications of Chinese economy slowdown on Japan
o Direct impacts (both macro and micro aspects)
o Indirect impacts
There are strong indications that the Chinese economy is slowing down after three decades of rapid growth. Its rapid growth transformed not only China’s own economy but also had a huge impact on other economies in Asia and the world. China emerged as the ‘assembly centre’ of production networks and has played a major role in the deeper integration of
economies in this region.
Clearly, a Chinese slowdown will have major impacts on the economies of this region. Also note that the Chinese slowdown is happening at a time when the global economy, including the major OECD economies, is facing difficult times.
The essay should focus on a selected economy in Asia (NOT Vietnam, as there is a chapter on Vietnam in the reference (a) given below) or the Australia-New Zealand region, and discuss the implications of the Chinese economy slow down on that economy.
The essay should describe, proving figures and data is necessary, the trade and investment linkages of the selected economy with China and the rest of the world, and how these relationships have evolved during the period of the ‘China Boom’. It should then discuss how a slowdown in Chinese economy impacts on the selected country through the various channels (trade, tourism, investment etc.), noting that there will be both direct impacts as well as indirect impacts. The indirect impacts come from the impact of the Chinese slowdown on other countries of the world, which in turn will impact on the selected economy. You should discuss what may be the impact on important economic variables such as, for example, the country’s real income, its balance of payments position, employment and investment.
