Why Australia must beware a new era for China's changing economy

As the Asian powerhouse cools its extraordinary rate of expansion, Australia must hope that service industries pick up the export baton from the miners

For the first time in almost a quarter of a century, China begins its new year celebrations with a question mark over how the country will maintain its extraordinary growth. The economy is maturing and breakneck expansion is being supplanted by a shift towards services and away from manufacturing, construction and agriculture.

For Australia, the implications of these changes are significant. Already, the growth in demand for iron ore and coal from China is slowing, driving the price of these two huge export earners for Australia to levels that are seeing the high-cost producers close down.

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