Will the Australian economy get effected due to the current crisis with China?

[Juggy777]

I’m sure each one here will be aware of the current economic crisis between Australia and China, and now things have gotten further out of hands as China has suspended all talks under under the China-Australia Strategic Economic Dialogue. It’s also pertinent to note that the meet under the Strategic Economic Dialogue hasn’t taken place since 2017, but it’s a big sign that China won’t hesitate to stop trading with Australia, so what do you’ll think of the current crisis between the two countries?.

More information here: https://www.news.com.au/finance/economy/australian-economy/china-indefinitely-suspends-all-activities-under-the-chinaaustralia-strategic-economic-dialogue/news-story/28f3127a544a3caff409ab9fe0d90533

[dothebeats]

Admit it or not, China is a big loss for Australia as a trading partner as most of the good by China are dirt cheap compared to other nations. Even though that's the case, this still opens a door for other countries to fill in what China left. Australia can still source a lot of raw materials and goods from other small countries which is even better in the long run, as Australia help develop these little nations and in turn they are getting a stronger network of trading partners as opposed to being stuck with only China. You can't deny the sheer output and throughput of China when it comes to processing of raw materials, labor, and whatnot. But if small countries were given a chance to better their supply chain, logistics, processing power, and their ability to harness their natural resources, I guess not everyone would be dependent of China in the future as some countries can already do the same thing (though of course not in a scale that China can do it.)

[Vishnu.Reang]

China is an important buyer for various minerals from Australia, especially coal, iron ore and bauxite. The problem for Australia is that it will be very difficult for them to find another buyer for these minerals, while China can easily source them from Russia or other countries such as Indonesia. The best thing to do for Australia would be to maintain the status quo and for that they need to stop interfering in China's internal affairs (especially in Hong Kong).

[target]

It was also in the news that Australia is preparing for war. This is not good for them while they are really out of the picture when Taiwan is just too close to China. Taiwan is close to becoming  battlefield, Taiwan is the reason. Australia just have no military hardware against China that has put huge amount of budget for war.

Yes. Aus is part of the Economic plan of China, they'd be affected for sure.

[Fesatmas]

as long as Australia does not have a large debt to China, it will not be a heavy burden in anticipation of the economic recovery there. however, if on the other hand, China is heavily dependent on debt owed to Australia, then it will greatly affect economic growth, especially if you want to get out of the crisis in Australia which is so complex.

[ninkdwi]

two giant countries that are experiencing a terrible economic crisis. I think the solution to this, they need to negotiate with countries that are ready to provide loans. although that sounds not good enough, but China and Australia can not afford it in such a short distance.

[DoublerHunter]

I’m sure each one here will be aware of the current economic crisis between Australia and China, and now things have gotten further out of hands as China has suspended all talks under under the China-Australia Strategic Economic Dialogue. It’s also pertinent to note that the meet under the Strategic Economic Dialogue hasn’t taken place since 2017, but it’s a big sign that China won’t hesitate to stop trading with Australia, so what do you’ll think of the current crisis between the two countries?.

^ If you have been to Australia during the past year, you would know how the economy of Australia is affected by its relationship with China. Even before, China is trying to reduce its trading rate with Australia. I heard that Australia has been trying to take advantage of China before. They accepted negotiation that is in favor of Australia before. But now that China is taking back its power, Australia is somehow egoistic to admit that China helped them a lot when it comes to trades.  On this one, I would agree for China to stop trading with Australia if the scenario I provided is true. Like who would want to be taken advantage of for becoming a good one?

[Hydrogen]

what do you’ll think of the current crisis between the two countries?

International relations between australia and china are shaping up to be version 2.0 of the Donald Trump versus china trade war.

It all started when australia questioned the official narrative on the origins of COVID-19. China implemented economic measures in retaliation. Australia implemented economic measures against china in response. It all snowballed from there.

The biggest question to me is why more countries are not upset over china's repression of information on the pandemic leading to economic crisis and reduced standard of living around the world.

People should naturally be angry and upset. And for whatever reason, that natural response appears to have been repressed.

[Sithara007]

Ideally Australia should be processing the raw materials such as iron ore inside that country, rather than exporting them to China and then importing the finished products from that country. But the high cost of labor and industry regulations means that this option is not viable. And Australia's geographic location means that China remains the best trading partner, at least for the mineral raw materials. Shipping them to North America or Europe is costly, as well as time consuming.

[Lorence.xD]

The sanction on resources that Australia has put on China isn't going to be damaging to Australia but on China because they need the materials, Australia can find another buyer for those resources, I don't think that it will affect them because they are recovering in the pandemic already.