China has become the largest economic dependencePublish By Daisey Stodola Updated 14/08/2011 11:09 pm in Business, World / no comments
(NZweek) – After credit rating of America declined, the global economy is suffering from turmoil; however, according to Australian Herald Sun report on August 8, the Australian economists and business leaders suggested that China is rather interested in Australian resources, and much likely to rescue Australian economy.
It is reported that RMIT economist On Kit Tam showed that Chinese foreign investment project means its resources needs are not affected at all. He believed the declining of American credit dating will have no direct influence. He also added that the $ 1.2 trillion American national bonds held by China have no alternative investment, and Europe is not reliable due to the debt issue. At present, China purchases one-quarter export commodities of Australia, while America only purchases 4%.
Ton Albanese, CEO of Rio Tinto Group, once suggested that major western economic entities are in debt crisis, the global economy is no exception, while Chinese economy is on a constantly rapid growth. Albanese also believe that Chinese economy will not decline below 8% next year based on his knowledge of China and Chinese economy. He believes, “Chinese economy will grow continually.”