Business Day

Click the word button in the next line to read the article most effectively because when I quoted it it didn't load properly for some reason. So, I would recommend clicking the button:

• Why China Is Rattling the World

Why China Is Rattling the World

By KARL RUSSELL and K.K. REBECCA LAI UPDATED October 19, 2015

China’s economy, long a reliable source of growth, is faltering, prompting concerns that
have been shaking global stock markets. Companies and countries that depend heavily on
trade with China are reassessing their strategies in the face of uncertainty. Related Article

Chinese Trade is a Driving Economic Force

As China’s economy slows, countries with significant exposure to raw materials, like Australia and Brazil, are facing serious headwinds. Germany exports machinery and automobiles to China, which had been a counterbalance to slow growth in Europe.

China’s 2013 trade with each country Total value of imports plus exports

Russia

Germany

Japan

United States

South Korea

Taiwan

Hong Kong

Malaysia

Brazil

Australia

$500

billion

300

100

China’s exports and imports to:

United

States

Hong

Kong

South

Korea

Japan

Taiwan

Germany

Australia

Malaysia

Brazil

Russia

EXPORTS

$368

bil.

$385

$150

$91

$41

$67

$38

$46

$36

$50

IMPORTS

153

16

162

183

157

94

98

60

54

40

TOTAL TRADE

521

401

313

274

197

162

136

106

90

89

The New York Times|Sources: China's General Administration of Customs, via CEIC data

A Stock Market Slide Ignites Broader Fears

The Chinese government significantly intervened as its the stock market slid. Global markets initially shrugged off the weakness as simply a correction in a market that had doubled in the preceding year. But the tumult is now spreading around the world, as worries grow about the health of China’s economy.

Peak

June 12

Change in the Shanghai

composite index

relative to the peak

0

June 25

The Chinese central

bank injects cash into

the financial markets.

–10

%

Aug. 11

China devalues

its currency.

June 27

The central bank

cuts interest rates

and lets banks lend more.

–20

Oct. 19

China reports

growth slips in

the third quarter

–34%

July 1

Regulators allow homes

and other real assets as

collateral when borrowing

to buy stocks.

–30

July 8

–32%

–40

Aug. 25

China cuts interest

rates again.

Aug. 26

–43%

–50

July

June

Aug.

Sept.

Oct.

Aprill 2015

May

The New York Times|Source: Reuters

Economic Uncertainty Reigns in China

Although the government puts China’s official growth at 6.9 percent in the third quarter, some economists question whether the economy is slowing more quickly. Here are two alternative estimates of China’s output.

+20

%

China’s gross domestic product

Year-over-year change

+16

+12

+12

%

Official figures

Official figures

3d qtr.

2015:

3d qtr.

2015:

+8

+8

+6.9%

+6.9%

+4

+4

Estimates through the second quarter by:

Capital Economics

Estimates through the third quarter by:

Lombard Street

0

0

’05

’15

’05

’15

The New York Times|Sources: Reuters; Capital Economics; Lombard Street Research

end quote from:

Why China Is Rattling the World