Who is Going to Hurt from China Slowdown?

The slowdown in China is now undeniable, with stocks across Asia falling as weak financial data last weak compounded concerns that China’s economy is slowing faster than expected.

But just who stands to feel the most pain as both China and the global economy as a whole unwind?

Certainly Hong Kong based companies like China Mobile and the Bank of China are going to feel the pinch. Anyone manufacturing consumer products with exposure to China is in for a rough ride, and you can count on Japanese car manufacturers taking a tumble as well. Toyota, Honda, Nissan and Mazda all stand to lose out as China cools.

China’s trading partners including the US, EU, ASEAN (association of South East Asian Nations), Japan and South Korea all stand to see exports decline. The US is China’s biggest trading partner, with over half a trillion in trade between the two annually.

Brazil, Russia, Australia and Taiwan are all large trading partners who will continue to feel the pain as China switches to an inward-looking, consumer based economy.

Lastly, you have China herself. As trading partners bank balances decline, unable to sell vast quantities of goods to a seemingly infinitely growing economic powerhouse, they will be able to buy less from China in return, putting more downward pressure on the markets, causing yet more fear, and more divestment.

A China slowdown will hurt virtually everyone. Most of all, China.

What do you think? Who is going to feel the most pain on a China slowdown? Who stands to lose most from an increasingly worrying economic situation in China?

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