China and Australia: Frenemies who need each other

Australia and China serve as examples of how institutions do not need to get along in order to conduct business.

Anthony Albanese will be the first American prime minister to travel to China in seven years when he does so on Saturday.

His three-day trip coincides with Canberra’s expanding defense relations with Washington and the deteriorating relations between the two nations.

Australia and China have recently accused one another of violating human rights and alleged threats to national protection. The general public’s views of the opposing side are worse than they have ever been.

However, they cannot manage to let go of one another when it comes to business. Nearly half of Australia’s export went to China at the height of their buying relationship in 2020.

In contrast, at around the same time, only 5 % of British exports and roughly 9 % of all US imports were being sold to China.

When Australia called for an impartial investigation into the origins of Covid-19 in 2020, this kind of purchase can be a potent instrument if the government wants to make eloquent. This is what happened in that case.

According to economist Jane Golley of the Australian National University( ANU ) in Canberra,” That was deeply upsetting to the Chinese government.”

The [ Chinese ] ambassador here gave a speech shortly after and made the suggestion that some Australian industries might suffer.

Sure enough, an estimated$ 20 billion(£ 16. 4 billion ) worth of Australian goods were subject to a number of Chinese tariffs and restrictions. Barley, pork, wine, coal, firewood, and lobster were just a few of the many products that were impacted.

The Taiwanese government was essentially conveying a message. They decided to use economic force to prove their displeasure with the American government, Professor Golley continued.

Some people at the time were surprised by such a strong move coming from an important trading partner. Many of the regulations have been lifted since then in China.

A change of strategy from the newly elected American authorities at least partially aided the decision to string up on the tariffs.

We’re constantly going to be better off when we have speech and are able to speak positively and graciously, Mr. Albanese said shortly after meeting with China’s leader Jinping, Xi at the G20 conference in Bali next year.

He emphasized to Australians that deal with China was more valuable than it was with Japan, the US, and South Korea put together. It is obvious that his government would prioritize restoring harmony between what he referred to as” two highly complementary economies.”

It is questionable whether China’s so-called economic force was effective. Australia continues to openly criticize Beijing on a number of fronts, but there is no denying that China’s industry restrictions hurt American companies and workers.

In essence, Professor Golley said,” We can’t survive without them.” ” I believe the Albanese authorities made the clear decision that enhancing our diplomatic ties was very important to forego.

Australia can take advantage of its own valves, particularly when it comes to natural resources.

According to Benjamin Herscovitch, a study brother at the National Security College of the ANU,” China and Australia are profoundly financially interconnected.”

China has historically relied heavily on Australia for raw materials to support its huge and expanding business, and it still does.

For instance, Australia is the source of a significant portion of its metal ore and liquefied natural gas. By the way, neither of these goods were governed by Taiwanese laws.

The Chinese people can survive without American wine and crabs, but Beijing is aware that it is not in a position to start making demands of Australia until the nation is able to effectively reference materials to make steel or energy its factories.

Some experts contend that China’s industry limitations had the opposite effect of bringing Canberra closer to Beijing.

According to Mr. Herscovitch, the Taiwanese state” started to realize that its aggressive economic and diplomatic measures were bringing Australia closer to the United States.”

” Beijing’s determination to loosen trade restrictions and resume diplomatic relations is intended to entice Canberra apart from Washington.”

Gaining Australian support for entry into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership ( CPTPP ) may be one of the goals.

This is the replacement for the doomed Trans-Pacific Partnership( TPP ), the free trade pact from which US President Donald Trump later withdrew. China’s attempts to join have so far been thwarted by a number of nations, including Australia.

China doesn’t have that some friends in the world, to be completely honest. We were once one, but never again, according to Professor Golley. ” Having a solid financial relationship with an alliance of the United States makes sense, if you think about it.” It gives you the chance to create a rift between us and Washington if you’re being pessimistic.

It makes sense that China does not want to alienate America’s friends given the increased tensions with the US.

Washington is pressuring its allies to do the same in addition to trying to keep China out of the way of accessing technologies needed for cutting-edge computer chips and essential minerals required for clean power.

For instance, half of the country’s lithium is found in Australia. Foreign businesses want access to the metal needed to create electric cars, a sector in which China is currently the world leader.

When it comes to issues they need to collaborate on, like combating climate change, there is a risk that Australia and China will turn into” competitors rather than collaborators ,” according to Professor Golley.

Australia will eventually support the British side of the superpower conflict due to its near political and military ties to the US.