The growth of the Asian economy is something that helped the whole world after the global financial crisis. But in recent years, as exports started to slow down, regions that were depending on Asia too much have seen some problems. There are several problems in Asia that are causing the situation to be exacerbated. For example, some issues include, the U.S.-China trade war, Coronavirus, slowing exports, worries over the global recession, and so on. All of this has an impact not only on China but on the whole world, including Oceania (Australia And New Zealand). Many stock markets were hit hard by the crisis, but Oceania seems to be receiving the most.
As Chinese represent one of the most active users of Casinos in New Zealand and Australia, the gambling market has been hit hard. Chinese people visit Australia and New Zealand regularly to go to the VIP Casinos and play many games that they offer. Some people say that Chinese gamers are big fans of different roulette game variations, and many of them visit Oceania for this reason. After the Coronavirus spread from Wuhan, many countries have restricted flights between them and China. Australia and New Zealand are among those countries.
Additionally, the coronavirus spread during the time when most of the Chinese population were visiting their homeland to celebrate the Lunar New Year, they were not able to come back to New Zealand or Australia as the flights got canceled. Because of this, many casinos lost their loyal users.
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The U.S.-China trade war
China and the United States represent the world’s two biggest markets. The trade war between the nations started as the President Trump decided to set tariffs and other trade barriers on China.
The trade war has brought U.S. farmers and manufacturers many struggles, but it is not only the U.S. and China who are getting hurt. The whole world is at risk of financial instability. In particular, countries and regions who depend on Asia and the Americas so much.
Australia and New Zealand, in particular, are in one of the toughest spots. The more problems China and the U.S. have, the harder it becomes for Oceania to have stable relations with them.
The consequences of the trade war can be so damaging that getting over them might be almost impossible to have normal relations. Many U.S. officials have criticized the Trump administration of the tariffs they put on China, but there are also many others who agree with this decision.
Australia is the sixth-biggest trading partner of China. Australia represents China’s fifth-biggest supplier of imports, while at the same time it is the tenth biggest customer for exports. Also, twenty-five percent of Australia’s manufactured imports come from China.
The new coronavirus has affected many countries, its damage to the economy is already easy to see in only one month. Exports of Australian gas, iron ore and lamb have been hit by the virus.
As Australia’s export is heavily dependent on China, the current situation puts the economic firmness of the whole region under a huge risk. The price of the most important imported good from Australia, iron ore, fell 11 percent in January. Australia exports iron ore worth more than $60bn per year to China and the industry is a major source of tax revenue. A decline in production and quality would damage the bottom line for Australia’s economy, while this can have dire consequences for the whole region.
The global death toll from the coronavirus has already passed 1,000, while more than 40,000 people have already been infected. 99% of these people are from China. The combinations of all these issues can lead to massive economic crisis throughout the world.