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?


Hong Kongs South China Morning Post said in an article on the 2nd that although Australia has always dreamed of getting the support of democratic partners in Sino Australian trade disputes, the reality is that it can only rely on itself. In international business, democratic and strategic friends are often the fiercest competitors.

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 China was likely to buy more as it sought to replenish inventories and reserves. He explained that China has more room for suppliers, and its not just the US..

China is Australias largest trading partner and the largest export market for Australias barley, coal, wine and other important commodities. Australian media previously quoted data saying that Australias exports of lobster, sugar, coal, timber, wool, barley and copper to China are worth about 6 billion Australian dollars (about 28.5 billion yuan).

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.

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, New Zealand, which has always supported Australia, did not choose to stand with it. 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..

Similarly, Australian wine faces the same situation. On November 27, the Ministry of Commerce of China confirmed that there was dumping of imported wine from Australia and decided to apply temporary anti-dumping measures in the form of deposit on the above-mentioned products.

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, 39% of which go 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.

So is barley. Reuters reported that China is looking for alternative suppliers of food crops around the world, which has benefited farmers in France, Ukraine, Argentina and Canada. At the same time, changes in trade relations between China and Australia are prompting the rapid restructuring of global barley trade pattern.

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.

Source: observer.com editor in charge: Chen Hequn_ NB12679