When Michael Smith arrived in Shanghai in January 2018 to take over The Australian Financial Review bureau there, the Chinese economy was growing at around 7 per cent. This year it is expected to grow by around 5 per cent. And some economists say that is an ambitious target.

Less economic activity means less construction and less demand for Australia’s biggest export: iron ore. As Treasurer Jim Chalmers says, this has significant implications for Australia’s economic outlook and how much money the federal government has to spend.