China is slowing down.
But, importantly, this decline isn’t an isolated event.
Since China is such a big player in the global economy, and a major trading partner of many countries, its slowdown will inevitably hit other countries. And HSBC economists point out that commodities are a particularly vulnerable sector in this stagnating climate.
“Given China’s role as the world’s biggest commodity consumer, any slowdown adversely affects prices significantly. Copper prices are down more than 20% from recent highs, and oil is down roughly 40%,” writes HSBC economist James Pomeroy.
Take a look below just how thirsty China is for commodities: