The mainstream newspapers in Australia do not shed much light about the real situation of the Cold trade war between Australia and China. If we look hard enough, we may find factual reporting about this subject in an English language published off-shore, in Hong Kong.
The information received from the Murdoch press and other MSM in Australia, sadly including our tax payers funded ABC and SBS tend to blame China only. The biased news has misguided a lot of innocent and uniformed Australians leading to their obsessive distrust of China and Chinese people.
Instead of reporting objectively as any independent media should do, they tend to focus on the negative aspects of the Australia-China relations, and presents an alarming and frightful perception of distant war drums in the South China Sea and all hot rhetoric of the US-China containment of China.
They use Chinese Communist Party this time as their scapegoat and instil fear into innocent and uninformed public using the old McCarthyism method, following almost every step of what US does.
We recommend our readers to follow some of the more independent news reporting from the US : World News Daily, Information Clearing House (News you won’t find on CNN or Fox News), and Australian owned John Menaude \: http://www.informationclearinghouse.info/ and www.publish.pearlsandirritations.com.au
In scanning through some Asian English language newspapers in Asia, we came across two articles written by Su Lin Tan, a journalist for the South China Morning Post (23 Sep2020) and former reporter for the Australian Financial Times, who presented a more informative, objective and balance articles on the Australia-China relations. These articles are like the “please explain:” special columns which deals specific subjects of public interest. https://www.scmp.com/economy/china-economy/article/3102636/china-australia-trade-ties-remain-strong-some-businesses
Prior to the reading of Su Lin Tan’s article, one would have the perception that the Australia-China relations has frozen and economic decoupling could occur any moment given the “bad” trade relations we have.
A short but interesting chronology of the Australia-China trade war in 2020 and information not found in the Australia media are presented as follows:
“Australia imposes dumping duties on Chinese aluminium extrusions (17Feb), stainless steel sinks (28Feb), pipe & tubular steel (31Mar), dumping investigation on A4 copy paper (16Apr); and started probe into the origins of covid-1 9(21Apr). In return, China bans 4 Australian meat processing plants (11May). Australia continues to impose anti-dumping duties on Chinese silicon metal (13May) and China impose 80.5% tariff on Australian barley exports (18 May). Australia initiates anti-dumping investigation on steel strapping (27May), Al-Zn coated steel (30 June), steel reinforcing bars (10July), Cooper tubes (13July) and Steel coils (27July). In return, China starting anti-dumping investigation on Australian wines (18 Aug), failed to acquire Kirin blocked by Australia (25Aug) and started investigation into subsidized Australian wine imports (31 Aug) and halts barley import (31Aug). ”
Despite these tit-for-tat “cold trade war” stuff, the headline in SCMP written by Su Lin Tan said “China-Australia trade ties remain strong for some business despite worsening political relations”. This statement is comforting but it raises the question, “why the anomaly” as most pundits would predict that the economic decoupling between Australia-China is a sure thing!
The report said “Volume of Australian shipments of beef to China in the first half of the year kept pace with last year, and Australian wine exports are moving along despite investigations. While some traditional exports have been hit, other trade segments, including services and e-commerce consumer goods are roaring”.
I believe the articles filled in a lot of void left unsaid in the Australian press and we would like to present these voids in the form of questions asked:
Has Australia “painted itself into a geopolitical corner” with China, and what is Beijing’s trade end game? Or China has called Australia’s bluff and has Canberra painted itself into a geopolitical corner?”.
Is it true that China does not oppose Australia’s alliance with the US as long as it does not put China’s national interests at risk?
Is it reasonable to say that China is more likely to listen to outside criticism if they are conveyed privately?
Would you agree that the actions taken by the US and Australia in the past months are not only ineffective, but also pointless and ultimately needless?
Would you agree that Australia and China cooperation is too valuable for “nonsensical decoupling?
Despite the optimism showed by Su Lin Tan’s article, there is still a nagging thought in people’s mind about the enormous amount of trade between Australia and China to the tune of $240 billion per annum which include the $80 billion iron ore export. Would it be unthinkable that when China finds a new source for the iron ore, it would buy it totally from the new source?
When this unthinkable event happens, we may lose up to 1/3 or more of our export income as China’s economy decline will also affect many other countries around the world including USA eventually. Can you imagine how it would affect our economy? And where are we going to find $38.7 billion for our defence budget and many more for our welfare, healthcare, education and pension etc?
As Kishore Mahbubani said “Iron ore will be a nuclear weapon for China. China will look for alternatives”.
The reader should read these articles in the World Daily News Information Clearing House, John Menadue Blog and SCMP for independent news and comments so that we would not be fooled or coerced by fear and mis-information and would surely come to the conclusion that to maintain economic growth post covid-19 recovery, Australia must come to a decision to repair the damaged Australia-China relations and restore our healthy and prosperous bi-lateral trade with China in order to maintain our economic growth post COVID recovery.
Dr Anthony Pun OAM, is the National President of the Chinese Community Council of Australia (CCCA);
Comments
8 responses to “The scary picture of a failed Australia-China trade relations ?”
The situation with trade is indeed complex. I am Warwick Powell, one of the people quoted by the journalist. I would be happy to share in more detail the comments I provided the journalist, to round out the picture. But in short, decoupling doesn’t happen with a click of the fingers. Contractual relationships and supply chain arrangements to service downstream customers cannot change overnight. But, buyers are increasingly mindful of the risks of deteriorating relationships (and how their own customers may react) and are actively developing risk mitigating strategies. To not put too fine a point on things, buyers (eg. importers, distributors) are keenly seeking opportunities to secure quality products for their customers from many other places in the world. China is keenly committed to being a trading nation. The technological infrastructure it is developing via blockchain technologies, for example, coupled with the additional e-commerce pilot trade zones being developed across the country, will open up channels for those who are committed to prioritising trade and commerce. The rest will be left in the slow lane.
“By yielding to US pressure to antagonize China, Australia risks being buried alive.” A view from the region – well worth the time.
https://asiatimes.com/2020/09/morrison-digging-a-grave-for-australia/
Australia, from years of Liberal Coalition Federal Governments from 1996 John Howard to the current Morrison Government 2020 (19 years) of ultra conservative rule has handed unfettered power to Defence ADS, ACSC, JCSC, NSSTC and Dutton’s Department of Home Affairs AFP, ASIO, ACIC. Australia is rapidly loosing its democracy and the rule of law. Threat of ISIS and fear of Islam has run its course from this Government, it achieved its object in pushing through draconian laws and more powers, and in order to justify the billions of taxpayers funds on military hardware. A new enemy is required and China is an easy sell to the public as the big threat to our values and sovereignty.
It will be interesting to see Australia’s economic landscape 10 years from now.
At last some good news. Thank you. And thank you also for the link to what seems to be a balanced news outlet, a rarity in today’s world.
When coupled with a surprise announcement of immense potential from (shudder shudder) Trump, it’s been a good morning.
https://thesaker.is/trumps-surprising-alaska-canada-rail-announcement-might-america-join-the-polar-silk-road/
SCMP is a balanced newspaper with plenty of anti China as well as pro China reporters. You can see this in their coverage of the HK protests, South China Sea and US-China conflict. You will find a lot of important news here that are not reported in Australia.
One of their best journalists is John Power who in his news reports, makes a point of allowing voices across different viewpoints to be heard. Henry Litton, a retired British judge on HK’s highest court of final appeal, is a regular and excellent commentator.
Regarding iron ore, China has built and building new mega ports on its eastern seaboard to accomodate “Chinamax ships”, mega ships taller than skyscrapers, that carry more tonnage than existing iron ore ships. Chinamax ships are used by Brazilian mining giant Vale, and China’s new mega ports open the door for iron ore from Brazil and Africa.
China has often been accused of not taking criticism well. I think there are 2 sides to this narrative. It is easy to criticise but the skill lies in getting your message across without offending. The Chinese will accept criticism provided the motive is benign and based on factual evidence. I found an excellent article that explains the Chinese’s view on criticism and free speech in the Global Times written by its editor in chief just 4 days ago.
https://www.globaltimes.cn/content/1202078.shtml
“Tolerance toward expression is of fundamental importance in achieving a modernized China”
Thank you very much Dr Anthony Pun for a well balanced and objective perspective on the Australia-China relationship, which one never really see in the Australian mainstream media. This frenzied anti-China coverage in our mainstream media is reconfiguring the general sentiment in society towards China and the Chinese, where it swings between suspicion at best to outright hate! This demonstrates how the intensity and speed by which the MSM is bombarding us with anti-China rhetoric is restructuring our society in favour of the vested interests in the anti-China reporting. Your questions that you pose require much reflection and insights from experienced diplomats, business people and others who had first hand experience of China and the Chinese culture a lot better than those journos in the MSM that has never set foot in China. However, if I may comment on the anti-Communist Party of China rhetoric, because it seems to me that there is no reflection by the MSM on what the CPC has done for its people over the last 30-40 years. I often think to myself which political party of any persuasion in the world was able to lift 850 million people out of poverty, lifted the country from being a poor nation to a super economic powerhouse, constructed infrastructure that made the life of its citizens a lot better and easier, rejuvenated the country’s enterprising spirit with so many individual and small businesses than any other place on the planet .. and I can go on about so many other things that the party has done for its people. In reflection, I often think about the “high speed trains” project that has been on the drawing board in Australia since the mid 1980s, when China was poor and had a modest transport system and we were rich. Today, China has an impressive transport system with high speed trains everywhere that are precise to the second (not a small feat when you have to transport 1.4 billion people around), while we are STILL talking about the “high speed trains”! Any objective observer comparing achievements would think that our political parties have failed us with their short-term thought bubbles!
George, on my last visit to China in 2018, I travelled from Shanghai to Beijing and back again on their high speed trains. Speeds of over 300 km/hr were constantly maintained out of built up areas. Quiet, smooth and a lot easier than travelling by air. I also noted on both trips that there was food being grown as far as the eye could see all the way to Beijing and back. For those who respond to blogs with predictions that China would starve without Australia, I say, go and have a look for yourself. I lived and worked in China for nearly 8 years from 1998 to 2006, during a period of incredible progress in infrastructure. In 2018 I was ‘blown away’ by the progress since 2006. As you say, when the CCP decide to do something, they just get on with it whilst our politicians temper so many decisions with ‘what’s in it for me and my mates’.
Sir,
You have brought out succinctly the importance of trade between Australia and China. Thank you. However, there is one phenomenon (I have to call it such because there is no other way of labelling it) which continues to puzzle me. Why is it that the hawks, be they from the political parties or the mainstream media, keep pillorying China and yet insist that trading should be carried on as usual. Any attempt to desist in any small way is berated as an attempt to bring Australia to its knees so that they could dictate terms. That defies logic. Is there another form of social or diplomatic exchange that I am not privy to?
It seems to me that a better trading relationship with China will enable us to recover faster economically from the pandemic. If these politicians or media personality say, as they often do, that we (always on our behalf) will not compromise our principles and values for economic benefits, what are the rest of us expected to live on? A daily diet of politics and news alone? Have they lined up a whole new group of buyers for our products or can they assure us that China will not buy from the South American countries instead where beef, wine and other products are pretty much the same as Australian ones? Are we trying to help the US in its trade war with China? If we are, one should be reminded that the US wants China to buy more from them, geopolitics aside. We die for for the US (in Korea, Vietnam, Afghanistan and Iraq), offend and compromise our trade with a major trading partner for them and buy expensive weapons (of questionable efficacy) from them. What else have we got left to give them? All for a promise to defend us? From a hypothetical war which they themselves have no promise of winning? For the hypothesis that a real war will correct the trade imbalance or stop them from growing? We just pick a fight with them, sit back and watch them lose (only soldiers will be affected, not the politicians sitting at home in front of the TV), march triumphantly into Beijing and make Xi Jinping sign the surrender documents and initiate another Marshall Plan to create a grateful democracy like the US did with Japan? If all Shanghainese were to take a boat to Australia, we will be flooded with a number of Chinese boat-people equivalent to the size of our present total population. One and a third billion people are not easy to kill even with nuclear weapons. Meanwhile, we will all be hardly scathed. Our soldiers will come home and march down George Street in a ticker tape parade and kiss girls here and there for pictures to be posted on our version of Time Magazine. Al reminiscent of WWII and our triumph over the evil AXIS powers.
Sincerely bewildered,
Teow Loon Ti