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Downturn in Chinese economy is likely to cause lower incomes for Chinese workers, meaning that they will be less likely to buy imports. As a result, the UK’s level of exports will probably fall leading to a decrease in AD. Could also cause less tourism/Chinese students in the UK due to lower disposable incomes, which reduces the amount of consumption within the UK economy.

However, UK could benefit from a fall in the costs of production due to cheaper raw materials produced in China. This would also mean that China’s exports will increase.

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During high levels of growth, Chinese economy had high levels of savings and investment. Which led to building more and more infrastructure. At the growth of 10%, Chinese economy assumed that there is very minimal scope for error. Due to investments highly contributing towards growth. In 2009, Chinese government forced growth, therefore, it could decrease the cost of borrowing and spending on high amounts of infrastructure. However, this led to a rise in debt. Total percentage of chinese debt is well over 300% of it's GDP. This could force China into recssion.

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Chinese manufacturers sell excess goods at lower price resulting in cheaper chinese goods, lower commodity prices, can reduce Uk inflation may even lead to deflation.
Slower growth for the chinese economy may also reduce their demand for UK exports.
If Uk export fewer goods and continue to import chinese goods this may result in a further deterioration of the current account deficit.
Reduction in global growth- reduction in demand for uk X even larger.

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A reduction in the incomes of chinese workers suggests a shift in AD away from Y*. This therefore will lower the price level and make chinese goods more competitive on a world scale. As China will be exporting more goods it suggests the UK will import some of these. Because of this it’s likely the UK balance of payments deficit will worsen and therefore AD in the UK will fall as a consequence.

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-Possible reduction in cost push inflation issues (any raw material costs from China may not be increasing at such a high rate)

-UK may need to import certain goods (manufacturing goods) from other countries as China is transitioning from manufacturing to service sector jobs

-Lower export demand for the UK (Chinese incomes are not rising at such a rapid rate so their incentive to import may be slowing down, UK AD may shift to the left)

-May reduce UK firms confidence (investment may fall if firms believe their global market is reducing due to the uncertainty that exports to China may decrease or expect them to decrease)

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Chinese economy slows down in growth (14.2% in 2007 6.7% in 2016), so the income levels fall giving the Chinese people less disposable income meaning that they will but less imports (UK goods). This means that in the UK will have a fall in Exprots meaning that there AD will decrease. Therefore there inflation rate will reduce and there growth levels will decrease.

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The UK trades a lot with China as both experience imports and exports from each other. Recently the Chinese economy has had slow growth which would impact AD and confidence, so there is low consumption and investment which reduces AD. Consumers from China are more likely to spend less on imports therefore the demand for UK exports would go down and therefore the UK would experience a fall in AD.

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China's economy is slowing down, this would lead to a fall in incomes which would reduce consumption and therefore AD. Also as the economy gets worse, they spend less on imports from the UK which would cause a deficit in the current account for the UK. This would cause a shift of AD to the left for the UK. Chinese goods will also be cheaper resulting in more imports by the UK, making the current account deficit larger

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China's economy is slow so their income per person is falling as well as their consumer confidence. This could lead to a negative multiplier effect of falling consumption harming the amount of UK exports sold. Also if China's AD continues to fall disinflation may occur making imports from China cheaper and thus more competitive on the global market. Consequently demand for imports in the UK may increase, further deteriorating the current account.

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chewwwwwwwwwwwwwwwwww

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Oh another A* lol whats new

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Sorry i'm late just went KFC lol

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The UK economy imports many Chinese goods so China gets more injections into there economy. This extra money can then be spent on government bonds from the UK causing the price of these bonds to rise. The yield of these bonds therefore goes down which means that the interest rates on finance goes down making it cheaper to borrow money. This reduction of interest rates also affects consumers and so the borrow more so C increases therefore AD increases. The slowdown in China could also cause income in China to fall so less British goods are exported to China reducing injections to the UK economy.

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You're all broke #WaitroseGang

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As the Chinese economy experiences a decline, their AD would decrease which could result in them exporting less from the UK. However the UK economy may benefit from exporting cheaper commodities such as raw materials from China. On the other hand increased imports from China would deteriorate the UK's balance of payments.

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Primarily the biggest concern for some people is the fear of a decline in net U.K exports, as even though we are a net importer, as economic growth in China slows down people in china might be expecting a big recession to occur and so might be less willing to spend there money on British goods and services, as consumer and business confidence is hit, so Britain might see further deterioration of the balance of payments on the current account as European economies are also facing sluggish growth and not to mention the growing uncertainty of U.K and EU trade relations post brexit. The reason the balance of payments deficit may worsen is because global commodity prices may see a fall as China the world second biggest economy starts demanding less, so Britain can take advantage of lower prices of essential raw materials such as oil, so import more, whilst China spends less on U.K exports.

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1) The Economy doesn't see risks anymore as they have have achieved 10% growth every year for 35 years. Due to them trying to stop China entering a recession in 2009,  their debt since then has grew to 230%/ 300% of its GDP. They tried to stop the recession but they only delayed it and are now entering a 'great recession',
2) Recession around the world caused China to try and stop it happening to them, but they only delayed it and now it's starting to happen. This is due to the stock market bubble, real estate bubble, municipal debt, excess capacity and capital flight.
3) It could cause an economic world wide recession if it is dealt with incorrectly, as it is an external shock.

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Economic growth slowing down for china means that there is a reduction in the price of commodities (for example oil and metal) this means that UK firms who import from China have a reduction in cost of production this means that they are able to charge less for goods and services therefore this reduces cost push inflation.

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If China's growth falls significantly then it will affect the UK massively as the growth forecasts have already been downgraded as the UK trades hugely with China. As the UK exports a lot of goods such as British clothes and cars to China if there is a recession then demand for these goods will fall reducing the level of exports for the UK causing AD to fall.

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As China's debt gets out of hand they may restrict the amount of imports their country takes, and this is an issue with the UK because they're leaving the EU and they won't be able to increase their trade activity with China. Who are they going to replace EU trade with? In addition, the slowdown in growth means consumers and firms will have less income to spend on UK imports, meaning the UK exports less = AD falls in UK economy.

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There will be a relative decline in the manufacturing sector and lower prices of raw material as there isn’t much demand for them. As AD shifts to the left the price level reduces, making their goods more competitive.

The number of Chinese people who come to the UK to study has increased over the years counting as a credit on the financial part of the Balance of Payments affecting the service sector inflows.

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As China’s economy slows down, their incomes fall which reduces their demand for UK exports. The reduction in their GDP may also lead to a decrease in the price level as AD shifts to the left making Chinese goods cheaper and therefore more competitive. This leads to an increase in demand for Chinese imports leading to a deficit on the UK current account. A reduction in their growth rates also means that UK businesses operating in China may not be able to repatriate as much profit back to the UK due to the falling incomes leading to a reduction in their sales.

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Slowdown in Chinese economic growth means income falls for the Chinese. This reduces demand for UK goods as UK goods are seen as more expensive. This increases current account deficit for the UK which ceteris paribus reduce AD for the UK so reduces the short term economic growth for the UK.

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Chines demand for commodities such as oil and metals has fallen. This has led the price of steel to fall and resulted in job losses in what's left of the British steel industry. UK is a net importer of commodities so can benefit from lower prices. This may see lower inflation as cheaper Chinese goods and lower commodity prices with lower production costs and so cost push inflation will be avoided as the AS curve shifts rightwards, lowering the price level. There is also worry of another financial crisis as China's growth was built on borrowed money. This may cause a fall in consumer and business confidence, delaying investment decisions and lower economic growth. With the UK having higher education than China many students pay to study here, a falling number of Chinese students will see a decline in service sector earning.