Australian Treasurer Jim Chalmers said on Sunday the government was closely watching China amid “concerning” signs of economic weakness that could weigh on Australia’s economy.
“I share the pretty substantial concerns that people have voiced about the Chinese economy,” Chalmers told Sky News television.
“It is concerning to see the weakness, the softness, in the recent weeks and months in the Chinese economy because it has obvious implications for us here in Australia.”
Recovery in China, the world’s second-largest economy, has sputtered due to a worsening property slump, weak consumer spending and tumbling credit growth, prompting the authorities to slash interest and promise further support while analysts downgrade growth forecasts.
China is the top trading partner for raw-materials exporter Australia, with annual trade of A$285 billion, although Canberra has urged exporters to become less reliant on China amid diplomatic tensions.
“In China they’re dealing with slower growth, they’ve got deflation, there are concerns in their property sector and to some extent in their banking sector, their exports have slowed as well, Chalmers said. “Our concerns for China in particular is something that we’re monitoring very closely.”