Australia China trade war: US, New Zealand, Canada profit at Canberra’s expense – World News

Australia China trade war: US, New Zealand, Canada profit at Canberra’s expense

The US is one of Australia’s closest allies and says it has our backs. But behind the scenes America is taking great advantage of our misfortune.

Australia’s disastrous trade war with China has been a major blow to many industries and the wider economy as a whole.

And while our allies have publicly supported us behind the scenes, they have quietly benefited from Australia’s misfortune.

This is according to an eye-opening new report from the University of Technology Sydney-based Australia-China Relations Institute (ACRI), which lays out a wide range of harsh economic realities facing Australia as a result of our dispute with China.

Written by director James Lawrenceon and project and research officer Thomas Pantel, the damning report shows Australia’s exports – such as coal, barley, beef, timber, lobster and wine – add up to $ 17.3 billion declined. The first nine months of 2021 compared to 2019.

But at the same time, our closest “strategic friends” – led by the US but including Canada and New Zealand – have reaped unexpected gains, with US exports of $A6.3 billion, Canada’s $A1.5 billion and New Zealand’s A1. 1 billion dollars.

In other words, while our partners have supported us on the world stage, they don’t mind muscle in business-wise.

“Australia’s strategic friends have offered useful rhetorical support for Australia’s plight,” the report said.

“But the results demonstrate a parallel commitment to further our own business interests, including ending lost Australian sales and doing more business with the People’s Republic of China (PRC).”

And betrayal goes a step further, even our allies fail to buy from us in our time of need.

“The expression of solidarity with Canberra has not extended even to strategic friends, leading to a significant increase in their purchases of Australian goods disrupted by the PRC to help reduce costs,” the report continues.

For example, from January to September this year, Australian wine sales to China dropped by a whopping $480.5 million ($A675 million) compared to 2019.

But surprisingly, US purchases only increased by $7.1 million ($A9.9 million).

“For Australian wine producers, market diversification is as always a difficult, lengthy and costly process,” explains the report.

“Nor has there been a comprehensive restructuring of Australia’s business patterns towards countries with which Australia shares values, such as a commitment to democracy.

“Comparing January-September 2021 with 2019, global markets redirected exports such as Australia’s coal to Turkey ($191.4 million, $A269 million), barley to Saudi Arabia ($US520.4 million, $A731 million) Is. and cotton from Vietnam ($350.5 million, $A492 million) – other countries where the alignment with Australia’s values ​​is unclear.

‘this is not normal’

Speaking to News.com.au, Prof Lawrenceson insisted that “the numbers are quite brutal”, this in no way undermining Australia’s important alliance with the US.

“This should surprise no one, and it certainly does not surprise Australian businesses,” he explained.

“This is the real world – you can be great partners with your strategic and security allies, but at the same time, the manufacturers in those countries can be your biggest commercial rivals.

“No one is saying don’t work with the US … no one is talking about that alliance, because that’s exactly what was expected – that we would bear the cost.

“We are not suggesting that the US is doing something devious here – Washington is not going to say to its producers ‘Please don’t take advantage of these opportunities because we want to help Australia’ – it is a joke. And that is not going to happen, the cost is borne by Australian producers and Australian producers alone.”

In this regard, Prof. Lawrenceson said that he did not believe that our current plight was inevitable, and that, instead, it was the result of our own actions.

“Many countries have challenges in their relations with China, but no other country has been affected by the extent of Australia’s trade disruptions at this time,” he said.

“It’s not normal, and I think with effective diplomacy, we shouldn’t have been in this situation.

“People put up stupid binaries and say, ‘What do you expect, that we shouldn’t stand up for our values?’ Every country stands up for its values, but Australia was banging its chest and leading the rest, and that shoddy diplomacy got us into this crisis.

Sadly, Prof Lawrenceson said he did not expect the trade war to end anytime soon, as both China and Australia are unwilling to back down.

The ‘root cause’ of ScoMo failure

Unsurprisingly, the report’s findings were picked up by the Chinese Communist Party’s mouthpiece. Global Times, which argued in a recent article that the “disappointment” felt by Australian businesses in relation to the trade war applied not only to China, but to the Morrison government as well.

“They should be clearly aware that the root cause of the deterioration of China-Australia relations does not lie in China, but in the Morrison Administration, which has repeatedly trampled on China’s red line on issues of core interest to China.” “

“It is believed that he may have more dissatisfaction with his government.

“…the fact is that Australia’s continued provocations on China are the root cause of the deterioration of China-Australia relations. And China’s response has been only a rational response to Australia’s provocation.”

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