This column has often drawn attention to the conflict between Politicians who want to punish China by de-coupling and Business who want more of China in trade and investment
Australia is the best example. Their government is dominated by their security services + and are “determined to teach China a lesson”. China has retaliated with tariffs on wine and barley exports.
Australian farmers have warned their government that the trade dispute will cost the industry $28bn over the next decade. Farmers are desperately looking for new markets but it is a long haul. A big Australian winemaking company said the anti-dumping tariffs imposed by China “had effectively closed the Chinese market”.
China will wait until Australia changes its policies. It will happen because Canberra is in a cul-de-sac.
Co-operation is better than confrontation. China is here to stay. Australia will have to change. It will hurt China but it will hurt Australia much more. New Zealand is doing it right – talking, negotiating, moving forward.
Biden will also learn – Compete but do not Confront.