Australia and china economic relationship with other countries

China country brief - Department of Foreign Affairs and Trade

australia and china economic relationship with other countries

AUSTRALIA'S most crucial trade relationship is under threat — and the but China has taken economic sanctions against other countries for. The Australia-China bilateral relationship is based on strong economic and trade complementarities, a comprehensive program of high-level visits and. No other country, relatively speaking, has benefited to quite the same of a study of the Australian-Chinese economic relationship, told me the.

Promoting Australia’s economic links with China

As China moves into its next phase of development, its demand will shift from raw materials to elaborately transformed manufactures, services, and expertise. Australia has some potential advantages in the supply of these, but they are not the clear advantages possessed by the resources sector. China as a market for our commodities As the drivers of China's growth change from urbanisation and basic manufactured goods to domestic consumption and more complex goods and services, the growth in demand for Australia's resources will moderate.

Australia's resource exports to China are likely to continue to grow, but at a slower rate, with natural gas to some extent supplanting coal.

Other commodities, such as wool and wheat, and other minerals will probably also do well as incomes in China rise.

China has threatened Australia with a trade war if ‘growing lack of trust' continues

A probable result is that the Australian dollar will fall. This will mean a partial reversal of the huge rise in living standards which contrary to popular perception Australia has experienced in the last ten years.

australia and china economic relationship with other countries

At the same time, it will improve the competitiveness of other traded goods and services industries which have suffered from the strength of the currency. China may be a market for some of them.

Australia needs to reset the relationship with China and stay cool

China as a market for more complex goods and services The Chinese market for more complex goods and services will expand in two ways. First, rising wages and consumer demand will increase demand for more sophisticated manufactured goods where Australia has some niches of excellence, for example, in medical devices and for services such as tourism where China is already an important market.

Second, as China moves production to more sophisticated goods and services, it will require high quality human resources, well-developed infrastructure, a well-developed financial sector and a good regulatory system.

Australia has the expertise to help to develop these. Already, China is the biggest market for Australian education services. Australia's financial sector is well regarded internationally for its efficiency and effectiveness, and its banks are among the most sound and stable in the world. This expertise in government and services can be exported.

Indeed, Australian banks are already operating in China and Australian experts have advised in a range of areas, for example, in urban development and health financing. China as a competitor The development of manufacturing in Asia has been a major reason for Australia's failure to compete in many areas of manufacturing.

As China moves up the value chain, more industries will be subjected to this competition. You could argue that security ties to the US have become more important as a consequence. It is simply to acknowledge the world has changed. It is sprinting ahead of the ability of policymakers to keep up.

Australia’s economic relationships with China – Parliament of Australia

Take the Foreign Policy White Paperfor example. On the other hand, and unavoidably, it acknowledged that the Asia Pacific is no longer uncontested space. As the paper puts it: This was a pointed and, as it turned out, unwise use of the phrase. While non-democracies such as China can thrive while participating in the present system, an essential pillar of our preferred order is democratic community.

It should be on guard in withstanding Chinese efforts to interfere in domestic politics.

australia and china economic relationship with other countries

Policymakers should bear in mind a simple rule of thumb in dealing with China. It will seek to get away with what it can. That includes bullying and bluster.

This has been pushed off course in the recent past.