We need a “clear China policy”

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So says ASPI at The Australian which recommends the following:

• We want to continue our close and growing economic relationship because both countries benefit.
• We will gradually diversify our economy to reduce the risks from relying too heavily on a single country.
• We welcome national debate. However, we won’t tolerate foreign influence activities that are in any way covert, coercive or corrupt.
• On investment in critical infrastructure, energy and telecommunications, we’ve reached a point of cumulative investment where further large-scale investment by Chinese entities isn’t in our national interest.
• We’re happy to engage in a defence relationship that increases understanding to resolve tensions and reduce prospects of conflict.
• We won’t help increase PLA capabilities because how China is beginning to use them, most obviously in the South China Sea, isn’t in Australia’s or the region’s interests.
• This will limit our research interactions with the PLA and related research institutions.
• Overall, we seek a mature, respectful relationship between our nations to enhance prosperity and security.
Michael Shoebridge is the director of defence and strategy at the Australian Strategic Policy Institute

All very much along recommended MB lines. Note that the key to diversifying the economy is to halve the immigration intake so that we can lift competitiveness and shift away from the Chinese urbanisation model towards a rebuild of non-resource tradable sectors (beyond education).

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.