Weakening Chinese economy: who's likely to hurt most?
As the Chinese economic mood sours, investors are asking which sectors could be hardest hit. IGTV financial analyst @AngelineOng looks at what China consumes most from the EU and which industries will likely to feel the pain.
(Video Transcript)
EUR can't afford China getting ill
Now, with data out of China showing, many investors are asking which sectors and companies are likely to be hurt most. Well, let's take a look at Europe for a start.
Taking a look at my chart here of Volkswagen, because European automakers, cars, vehicles and machines are one of the biggest Chinese imports. Electronics and chips are another big source of imports for China.
The European Union (EU) imported €32 billion worth of goods from China last year, but remember, it also knocked up 13 billion euros in exports to China, according to Eurostat. China also consumes a very large amount of EU-generated medicines and medical-related products, along with these other sectors that I've spoken about.
Perhaps it's important to note that, with the weakening data out of China, the Europeans will also want to bolster and help, because China essentially is a big consumer, so they can't afford China to get a really bad cold.
EU must reduce dependency
China is the EU's third-largest export market and biggest source of imports, so where is the salad dressing?
Well, the EU will have to reduce its dependency, or it says it's aiming to reduce its dependency on the Asian giant, but at the same time bearing in mind that with its economy weakening, the strength of China's consumption of EU goods might also be weakening at the same time.
So I think this is a good time to end the video. Thank you for watching and I hope to see you in the next video. Bye!
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