NEAR the centre of Sumatra, an Indonesian island once blanketed by forest, a gash in the ground reveals the wealth that lies just beneath its surface. Large yellow diggers prise out coal and tip it into 60-tonne lorries that huff their way to the top of the open-cast mine in Pauh subdistrict. Five years of constant traffic, propelled by China’s hunger for fuel, has formed deep ruts in the dirt road. Recently, however, the lorries have stopped moving at midday. China’s appetite for coal has plateaued, the coal price has sagged and Minemex, the firm that operates the mine, has given workers longer lunch breaks, without pay. “We have no choice. We must endure,” sighs Demak, a sun-weathered 38-year-old.Enduring might seem an apt word for Asian economies that had come to rely on ever-stronger exports to China. After averaging 10% annual growth for 30 years, the Chinese economy has managed only 7.5% over the past two years—enviable for most countries but a clear downshift for China. The lull has rippled through the region. Taiwanese machine-tool makers have seen exports to China fall by more than 20% since 2012. Australian iron ore for delivery to China recently hit its...
from The Economist: Finance and economics http://ift.tt/WK2XHD
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