Solomon Islands is watching closely any effects the world financial melt down will have on the Chinese economy.
In his tabling of the 2009 budget in Parliament yesterday, Finance Minister Snyder Rini said any negative effect the global financial crisis had on China will badly affect Solomon Islands international trade and eventually its local economy.
Mr Rini said China is an important trading partner, importing a lot of Solomon Islands raw materials mainly round logs.
The SIBC reports he said a fall in the demand of round logs from China will reduce economic growth, employment, government revenues and worsen the trade deficit.
Mr Rini said that while the country's financial system remains strong, the country is not immune to negative impacts of the worldwide turmoil.
