For many years, China has become Australia’s largest trading partner and the latter’s largest export destination. Thanks to the strong demand in the Chinese market, Australia has made a lot of money. However, in recent years, the Australian government has insisted on going its own way, willing to be the pawn of the United States, and frequently attacked China, causing the continued coldness in China-Australia relations and also causing a negative impact on China-Australia economic and trade cooperation.
Affected by the new crown pneumonia epidemic, Australia has recently received a bad news. Data released by the Australian Bureau of Statistics on the 2nd showed that the country’s GDP in the second quarter shrank by 7%from the previous month, the largest decline since 1959 on record. The Australian”Financial Review” pointed out that this marked the first technical recession of the Australian economy in 29 years.
What’s worse, due to the trade friction with China, The prospects for Australia’s economic recovery are not optimistic, and Australia’s retribution for offending China has begun to appear. According to the”Nihon Keizai Shimbun” website, China’s imports of iron ore and coal from Australia have surged since its accession to the WTO. After the end of the resource boom in 2013, China is still driving Australia’s economic growth. Moreover, a large amount of Chinese capital has flowed into the Australian real estate market, and residential investment has been activated and has become a new pillar of economic growth. The report believes that if Australia’s relations with China do not improve after the border is reopened, as the inflow of Chinese funds decreases, Australia’s economic recovery will inevitably be overshadowed.
Actually, for the Morrison administration, it has flattered the United States, And unilaterally undermining relations with China, some Australian media have been deeply worried. Australia’s”Sydney Morning Herald” published an article on the 7th entitled”Advice to Generals-China is Our Economic Destiny”, stating that even in the era of great power competition, Australia does not have to choose sides between the United States and China. If Australia abandons China, the price is unbearable.
The article pointed out that even if Australia puts everything that can be exported Selling to Japan and South Korea will not find new iron ore and coal markets to replace even part of the current sales to China. It is also impossible to easily replace the export of wine, meat, dairy products and finished products to China. Moreover, the largest share of foreign tourists comes from China, and the largest number of foreign students also come from China.
The article warns that what harms China’s prosperity will also harm Australia’s prosperity. If Australia loses trade with China, Australia’s living standards will decrease, its economy will shrink, and its ability to pay for military defense will be weakened. Therefore, Australia cannot”decouple” from the Chinese economy. The Australian government should make a rational choice and refuse to take sides in the Sino-US trade and technological conflict.