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Slowdown In China Could Mean An Economic Hit To California

Vincent Yu / AP

A woman walks past an electronic board showing Hong Kong share index outside a local bank in Hong Kong, Wednesday, Aug. 26, 2015.

Vincent Yu / AP

A UC Davis economist says California will be hit particularly hard if a slowdown in China's economy goes any further.

Professor Wing Woo says it would affect more than just the hi-tech industry and agricultural exports. He spoke Wednesday on Insight with Beth Ruyak. 

"It would hit us across the board because it affects the number of students from China, the number of tourists from China and the amounts of real estate investments by Chinese in California," he says.

As the week began, Chinese stocks recorded their biggest slump in eight years in what's been called China's "Black Monday." The plunge triggered stock market jitters throughout the rest of the world.

Woo says if China keeps cutting interest rates, its currency will become cheaper. That means the prices of California products would go up, cutting into purchases by Chinese consumers.