China’s slumping economy a bigger threat to Australia than its plunging stock market

The impact of the Chinese stock market on Australia will not be great, but its slowing economy and demand for goods will continue to be a drag on our growth

This week the Chinese stock market has plunged more than 17% in three days. While its value still remains higher than it was a year ago, the fall in value is a reflection that China’s economy is undergoing a tough transition, with lower economic growth. For Australia, the plunging Chinese stock market will have little direct impact, but the slumping economy will.

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Related: Reality is kicking down the door of China’s command economy | Greg Jericho

Related: How China’s economic slowdown could weigh on the rest of the world

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