President Trump: Implications for China - Westpac

Research Team at Westpac, suggests that arguably, relations between the US and China is where the greatest risks lie for the global economy post the Trump victory.

Key Quotes

“China’s development in recent decades has been a boon for the global economy on many fronts, including: the efficient production of manufactured goods, which has helped keep developed world inflation contained; the greater availability of financial capital, as foreign exchange recycled into developed world markets; and for commodity demand.

Consequent gains for incomes in China have also seen the ongoing rise of its middle class, which has then brought further benefits for the global economy via increased services trade and financial integration. Nothing is inevitable, but persistent diplomatic tensions between the US and China would put these drivers of global growth at risk, with potential losses not only limited to the US economy. Obviously, Australia is materially exposed to developments both in resources and services demand.”