Essay China 's Economic Impact On The Chinese Economy And The U.s.

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Next, as mentioned earlier the implications of China’s slowdown will not just affected the Chinese economy and the U.S. but also it impacts for the rest of the world economy. China is one of the major commodity consuming countries. There are lots of industrialisation and urbanization took place in China. However, after many years of investments the project unable to deliver the expected return for investors. Thus, a raises of questions about additional investment plans. This as a consequences lead to a fall in the demand for commodities in domestic consumption and also drive prices down. For examples, Michaels (2015) states that in agricultural sector ‘the global benchmark cotton future prices was below 60 cents per pound, the lowest since 2009’. Then, due to a global market surplus of iron ore that asssociates with China’s slowdown and the subsequent implementation of import barriers, the price of iron ore fell by 47 percent in 2014 and hit a five-year low of $66.84 per tonne in December also between 2013 and 2014, Chinese demand for gold also fell significantly which caused China to drop below India as the world’s top gold consumer (Michael, 2015). In addition, in 2014 the dropped in demand for coal by around 2.3% and fell in production and imports by 2.1% and 9.0% respectively, causing local prices to slump to a six-year low. China’s slowdown has also worsen the plunge in global oil prices since July 2014, although it has been less of a direct contributory factor when…

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