The Times Australia

The Times

ANALYSIS: U.S. has become defacto beneficiary of China-Australia trade war

  • Written by SHANNON

The China–Australia Free Trade Agreement (ChAFTA) took effect on 20th December 2015. It is an historic agreement that has delivered enormous benefits to Australia. It’s not only enhancing Australian competitive position in the Chinese market, but also boosting economic growth and creating jobs.

China imports about 1/3 of all Australian exports. For example, Australia’s export of iron ore to China in 2019-2020 financial year amounted to $150billon, and in 2014-2019 about $300billion.

However, the current trade relationship is a stark contrast to the “historic” China-Australia Free Trade Agreement signed at the end of 2015.

As bilateral relations have deteriorated to their lowest level in decades, a trade war between Australia and China has ramped up.

China is imposing tariffs on Australian commodities such as wine and barley, and has restricted imports of Australian beef, coal and grapes. These actions are described as “economic coercion” by the United States.

But there is the other side of the coin. Although US Secretary of State Antony Blinken promised that “Washington would not leave Australia to face economic coercion from Beijing”, trade data shows the United States is prioritizing its own economic interests over its ally’s.

The newly released trade data and reports shows that US coal shipments to China, which gradually began their upward swing from nearly zero in October last year, climbed to 300,000 tonnes by February. In March, US exported more than 660,000 tonnes coal to China, doubling the amount in February. In April, China received one million tonnes of coal from the US.

According to Chinese authorities, the United States in May continued shipping 720,000 tonnes of coal to China, in order to support an upward trend and fill the gap left by Australian coal.

Almost at the same time, Australian coal exports to China have fallen to almost zero.

According to Bruce Haigh, former Australian diplomat and political commentator, “This is not the first time the US has prescribed a dud cheque. Joe Biden is unlikely to build bridges to Southeast Asia and China for the Australian side. If the Morrison government continues to blindly follow the US in 'dealing with' China, then the Australian side will taste the bitterness.”

The United State shows “solidarity” with Australia over the trade war, but Australia is paying the price for embracing it.

The Morrison administration continues to wait for support from across the ocean as they seem to be overlooking what the U.S. has actually done.

Image - View of piles of coal on a quay in rizhao,East China’s Shandong Province - Photo:cnsphoto

Times Lifestyle

Choosing the Perfect Parka: Expert Tips for Beating the Freeze in Style

As the cold weather approaches, the right parka can protect you from the cold while keeping you stylish. Like the choice of a custom letterman jacket, the choice of a custom parka is based on both the aesthetic and practical considerations. In this a...

Wooden Name Trains: A Personalized Gift for Modern Kids

Are you looking for a personalised and at the same time an educational gift for the toddler in your life? Then a wooden name train should be on your shopping list! This unique toy is not only fun to play with but comes with an educational element...

Choosing A Commercial Bar Fridge: Essential Tips For Restaurant Owners 

Your restaurant's bar is the heart of your establishment. It's where customers gather, socialize, and enjoy your carefully crafted drinks. Your commercial bar fridge ensures your beverages are perfectly chilled, ready to delight your guests. A poo...

Times Magazine

Uniden Adds Three New Baby Monitors to Award-Winning BabyWatch Range

Uniden has introduced three new models to its award-winning BabyWatch baby monitor range, offering parents a variety of high-tech features at an affordable price point, to keep an eye on newborns and toddlers from anywhere around the home. The th...

Take The Plunge, Elevate Your Personal Health: P3 Recovery Opens In Port Melbourne

World leaders in wet and dry therapy make wellbeing even more accessible for Melbournians  Ice baths, infrared saunas, IV therapy, breathwork. Just some of the latest wellness therapies that happen to be housed inside P3 Recovery centres emergin...

Prestons ranked Australia’s worst suburb for parcel theft

Shocking new data reveals that parcel theft claims have more than doubled this year, with Prestons in New South Wales named the worst suburb. This year there’s been a 59% increase in claims for parcel loss with a wider range of people lodging ...

Business Marketing