Here's a piece from AMP Capital - a big Australian fund manager: China sets 7% growth target: Implications for Australia and commodities
Its worth a read, its "An update on the Chinese economy and explore what this means for investment markets."
While growth in China has slowed since the previous decade, China is still consuming large quantities of commodities. In fact, Gross Domestic Product (GDP) growth of 7% today is equivalent to about 14% GDP growth a decade ago as the Chinese economy has more than doubled in size over that period. A key issue for Australia is that the supply of commodities has now caught up with demand and this will continue to weigh on commodity prices going forward. The good news though is that the risk of a hard landing in China remains low and so a collapse in commodity demand is unlikely. The property sector remains a swing factor in commodity demand.
