Economist Andrew Charlton looks under the hood of the Chinese economy. He finds that much of the prevailing wisdom in Australia about China’s so-called ‘juggernaut’ economy and ‘supercycle’ it is supporting is short-sighted. Australians have consoled themselves with the easy assumption that China’s growth will continue to power our economy, but Charlton argues that soon China’s growth may slow and these assumptions will shatter.
China’s rise has been perhaps the most significant economic event in two centuries, occurring 100 times more quickly and on a scale 1000 times larger than Britain’s Industrial Revolution. Since 2000, Australia has been an essential part of this transformation, providing the raw materials to feed China’s frantic manufacture of steel vertebrae for everything from cars and trucks to railways, apartments and office towers. China’s appetite for resources has made us richer than ever before, but it has also drained the competitiveness from many parts of our economy, leaving us vulnerable.
In Dragon’s Tail, Andrew Charlton shows that China’s growth model is now reaching its limit, and the world’s most populous economy faces a challenging transition. Whether China crashes, or crashes through, this will have dramatic implications for Australia, slowing the demand for our resources and forcing us to reassess the foundations of our wealth. Charlton looks at ways to revitalise the Australian economy and secure our prosperity in a changing world.
Charlton shows … a rare lucidity … a welcome addition to an important national debate. Australian Book Review
With appealing compression and clarity, Andrew Charlton addresses the impact of China’s economic boom and examines Australia’s economic future as the yin to China’s yang … he shows how the mining boom in Australia has damaged other sectors of the economy and why it will leave us exposed when – or if – the crash comes. Fiona Capp, Sydney Morning Herald