China Shock Spares Australia and New Zealand

Australia and New Zealand appear to be insulated from the China Shock, a phenomenon that has had a significant impact on many countries. The China Shock refers to the surge of Chinese manufactured exports that have hollowed out factory employment across much of the developed world.

The region's economy relies heavily on commodities such as iron ore and liquefied natural gas, which are in high demand by China. In 2024, Australia exported US$105 billion worth of iron ore to China alone, with a trade surplus of around US$80 billion.

New Zealand also benefits from its strong dairy industry, with milk powder being the country's single largest export, valued at close to US$10 billion. China is New Zealand's biggest market for this product, accounting for about one-fifth of all exports.