China economic slump concerning to Australia: Chalmers

The country's largest trading partner has been suffering an economic slowdown in recent weeks, with deflation and exports down and unemployment on the rise.

Treasuer Jim Chalmers said the slump in China's economy painted a worrying picture.

"A lot of economists around the world are concerned about the Chinese economy right now, and ... I share that concern," he told ABC Radio on Friday.

"What we're seeing ... is a very different combination of challenges compared with most of the rest of the world."

The treasurer said a weak retail sector in China, along with property sector concerns and local government debt were also issues for the superpower.

"All of those things together paint a pretty concerning picture," he said.

"We monitor these developments very closely, as you would expect, because in our economy ... the two things that will probably matter most to that trajectory will be developments in China but also the impact of these (interest) rate rises which are in the system."

Trade with China represents about one-third of all of Australian exports.

Exports with China have recently been buoyed by developments where tariffs on Australian barley have been lifted after three years.

It's hoped tariffs on other products subject to trade bans, such as wine and lobster, will also be able to be lifted.

Dr Chalmers said the government would monitor the situation closely.

"We're not quite hostage to developments in the Chinese economy but we are very exposed to them," he said.

Australian Associated Press