Mana News editor Joe Trinder

The Chinese stock exchange took a 5.9% plunge of approximately $3.5 trillion dollars on Wednesday. Foreign traders have sold Chinese shares at a record pace this week over the Chinese government’s meddling in markets.

The Prime minister John key has been informing the public how New Zealand is not immune to the Greek financial crisis, although Greece is not even in the top 50 of our trading partners. While News headlines are looking at the wrong economy “New Zealand businesses should prepare for repercussions of a Greek debt default”

New Zealand’s 2nd largest trading partner is China, The New Zealand economy is reliant on China for selling infant formula and dairy products.

In terms of economic stability this is bad for New Zealand probably much worse than the Global financial crisis in 2009. The GFC  affected Wall street and the United States is behind China as our third largest trading partner worth $8.2 Billion per annum but China doubles that at $16.1 billion.

The New Zealand dollar is at a 5 year low of 67 cents to the US dollar and commodity prices have dropped. Finance minister Bill English favourite economists Paul Bloxham recently told CNBC “We think New Zealand will be the rock star economy of 2014,” But failed to acknowledge how the NZ economy is intimately linked to the Chinese economy.

The Chinese stock market crash has just begun and for a third term National government a Chinese stock market crash is a nightmare. Fortunately the Finance minister after seven years has claimed a hollow victory by delivering his first surplus budget.

If Treasury had not borrowed $80 Billion debt in government debt they could have cushioned the blow with Quantitative easing. With the Chinese economy in terminal decline rural New Zealand is about to be hit hard but its rural New Zealand that vote blue.