The news.com.au finance reporter Frank Chung is right to note the risks to Australia from a possible crash in China are much greater than the risks from the Greek crisis (see Chinese chaos worse than Greece). We are much more exposed to the Chinese economy than the Greek economy. Indeed, China is Australia’s largest trading partner, and indeed it is a big contributor to Queensland’s economy, having taken over from Japan in recent years as our largest export destination (see chart below, in which I haven’t bothered to plot exports to Greece because they are negligible). I’m reasonably confident Grexit won’t cause huge financial and economic turmoil, as the country is a minor player in the world economy and the fear of financial contagion is the result of over-active imaginations, but I’m less confident about events in China, which we need to watch closely.