This will cause Australia's first recession in over thirty years. Chinese steel is made from Australian iron ore, which is Australia's biggest export.
At the start of the Global Financial Crisis, the Chinese government stimulated the domestic housing market, which was the start of this bubble, but the demand for steel was enough to ensure that Australia suffered no economic downturn at all.
Value of iron and coal for Australian exports in 2021 was even higher than in 2019. Iron at $118B, coal at $54.3B, or $172.3B/343B (50.2%). That’s definitely going to hurt.
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At the start of the Global Financial Crisis, the Chinese government stimulated the domestic housing market, which was the start of this bubble, but the demand for steel was enough to ensure that Australia suffered no economic downturn at all.
All that's about to come crashing down.