Why is there no partner to help Australias trade with China frustrated?

category:Finance
 Why is there no partner to help Australias trade with China frustrated?


South China Morning Post: Australia can only rely on itself

Its not that China needs Australia, its Australia that needs China

Strictly speaking, China doesnt need wheat and barley Imported from Australia. What needs the Chinese market more is Australia.

Agapi quoted S & P global data at CNBCs Asian financial forum on December 1 that Australia was already at a disadvantage in its trade dispute with China. China has found alternative sources of supply and is currently importing a large number of agricultural products from the United States, including wheat, corn and soybeans, while Australia is trying to diversify its sales channels, but progress is not optimistic.

Mr Agapi said it was likely to seek more reserves with China. He explained that China has more room for suppliers, and its not just the US..

Andrei Agapi, deputy director of Global Asia Pacific agricultural pricing at S & P, video capture

China is irreplaceable to Australia, which is not only reflected in Chinas purchasing power market, but also has a strong manufacturing level.

Australian News Networkuff08 news.com.au uff09In an article published on December 1, China is Australias most important partner in terms of imports, and Australia is very dependent on China in many ways.

In 2017-2018, Australia purchased a $71.3 billion worth of goods from China, equivalent to 18% of Australias total imports. It includes telecommunications equipment, furniture, toys and a series of indispensable products in Australian families.

Rod tyers, a professor of economics at the University of Western Australia, recently pointed out in an article that if China and Australia launched a comprehensive trade war, Australia would lose 6% of GDP; Gary Mortimer, a retail expert at Queensland University of science and technology, said that if Australia stopped importing all Chinese products, it would destroy the countrys GDP Destructive effects .

In trade, democratic partners are often competitors

At a time when the manufacturing and export industry has been hit hard, Australian public opinion has two views on how to deal with it: one is to seek protection from the United States and transfer the security treaty between Australia and the United States from the military field to the economic field; the other is to establish an economic Union to fight against China together with the so-called five eye alliance.

Both views are based on the fact that Australias democratic partners are reliable. However, Hong Kongs South China Morning Post said on December 2 that in this trade dispute, the reality of Australias status in the world economy has been fully exposed, and it can only rely on itself.

In international business, democratic and strategic friends are often the fiercest competitors, the article said.

In early November, Australian media reported that tons of Australian live lobsters were stranded in Chinese airports and faced with the problem of customs clearance delay. Subsequently, the Australian lobster industry began to panic and decided to temporarily stop exporting lobsters to China.

China is the largest export market for Australian lobsters. According to Australian government data, between 2018 and 2019, the countrys lobster exports totaled 3.534 billion yuan, of which about 94% were sold to China. Australian producers account for 37% of Chinas lobster market price.

At this time, we have no choice to stand with Australia. According to the South China Morning Post, New Zealand did not reject a request from Shanghais top restaurants after the supply of lobsters in Australia was cut off..

Although the little partners of Australia said that they should support it, they organized an activity of buying Australian wine and supporting Australia through the Anti China organization transnational parliament China policy alliance. However, Australian media also admitted that this temporary promotion is just a drop in the bucket. According to the South China Morning Post, the news that Australian wine was subject to a tariff increase was a godsend opportunity for winemakers in the United States and New Zealand. They cant wait to occupy the empty wine shelves in supermarkets in Chinese cities like Qingdao and Chengdu.

Australia exports wine to 117 countries, but 39% of it is sold to China, the Sydney Morning Herald quoted data as saying. Its second largest market is the United States and the United Kingdom, accounting for 15% and 14% of Australias total wine exports, respectively.

Brent atthill, an executive at rmianalytics, a Swiss consultancy that specializes in brewing ingredients, says there is a liquidity problem in the market, and when China makes additional demand, [barley] prices are pushed up. However, Reuters noted that barley prices have risen strongly around the world, but Australian barley prices have fallen by more than 10% this year.