ScoMo has chosen Beijing over Washington

It’s all the way with the USA, says David Crowe:

Morrison believes that Australian interest is in telling China the old way cannot continue.

This is a risk. Chinese observers already talk of a “freeze” in relations; now there is the prospect of a further chill. Morrison has logic on his side but will not want to be the Prime Minister who brought Australia’s long boom with China to a halt.

Morrison says he rejects the binary argument that Australia has to choose between the one great power and the other, yet this denies what all can see. Of course there is a choice to be made. We saw it this week. Morrison has made a central decision in his leadership and there is no doubt which power takes priority.

I wish I could agree. The Morrison Government has stacked key China positions with relative hawks and its has come down on the US side of the trade war, more or less. These are encouraging practical and rhetorical commitments.

But what the Morrison Government has also done is double and triple down on an economic model that does the complete opposite. The outright focus on commodities and housing as the twin pillars of the Australian economy drives Australian economic interest ever deeper into the Chinese sphere of influence. Dirt speaks for itself and we can see its influence in WA’s virtual CCP puppet government. Housing is more subtle but even more dangerous given its impact of household wealth:

  • it relies entirely upon ongoing population growth driven by mass immigration;
  • that has a large mainland Chinese component;
  • we can already see how that plays out with Gladys Liu, who currently holds the Government’s majority in her hand, linking it to Beijing;
  • Beijing puts a lot of effort into corrupting ethnic Chinese electorates and their candidates;
  • there are already effectively two Chinese federal electorates. What happens when it becomes four or eight? The result won’t be all one way. The Chinese electorates are not ciphers of Beijing. As Bill Shorten discovered when his egregious parental visa bribe lost him both electorates. But, through no fault of their own, they are vulnerable to Beijing’s bribes and cajoling. The risk is clear that if the migration continues then no political party hostile to CCP intentions will get elected in Australia.

The CCP friendly government of Manchurian Dan in Victoria is an example of where this leads federally in the long run.

MB has tried for years to promote a lower immigration intake to mitigate this risk. We do not believe in, and have fought against, any notion of discriminatory immigration given how out of step it is with multicultural principle. Not to mention, singling ethnic Chinese out for bans would almost certainly send Beijing into meltdown.

But unless and until Morrison cuts the flow of mainland Chinese migration into Australia, preventing further expansion of CCP ballot box power in whatever form that takes, he is implicitly choosing Beijing over Washington in the long run, no matter how much he kisses the Trump derriere.

David Llewellyn-Smith

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.


  1. But unless and until Morrison cuts the flow of mainland Chinese migration into Australia, preventing further expansion of CCP ballot box power in whatever form that takes, he is implicitly choosing Beijing over Washington in the long run, no matter how much he kisses the Trump derriere.

    Unfortunately true. We need to be clear eyed about these things – PC social grandstanding be damned.

  2. Australia’s prosperity depends on the Chinese buying our dirt,milk formulas, and overpriced real estate, nothing should be allowed to stand in the way of prosperity!!

    Immigrants from other countries don’t overpay for properties like the Chinese. What other ethnicity would pay 1 million dollar for a 2 bedroom dogbox in Epping so they can send their children to an overcrowded school? The owner doesn’t live there : they just use the address so their daughter is included in the catchment area..

  3. TailorTrashMEMBER

    This has to be the slowest surrender in history ……………many years ago I remember telling my little children how lucky they were to be born Australians ………but as they grew older I made sure they had their multiple foreign passports in place ……I would love to be proven wrong ….but the more I see the more
    I doubt it ……..getitintaya straya !……..and Scomo with his “comprehensive strategic partnership “ is still a fcukwit……bigly …….

    • What sort of citizen patriot gets passports to bail out as he lets his country surrender and even calls others fcukwits on the way out. How about backing the advice to your kids, tear up the foreign passports and fight politically or however you like to turn around your shitty country.

      • TailorTrashMEMBER

        Never said I was leaving ……….I will be here and happy to fight politically or to use the Bren gun and go out quite happily defending a country that give me a wonderful life ……but my children are a different matter ……..they have already been dispossessed………and that is largely by my (our ?) generation ….sad to say ……..their escape under other passports is in the event ( likely ) that Australia no longer exists ………..

        .and I remain unrepentant in calling Scomo a fcukwit …….I will be happy to withdraw that
        when I see him unveil some policies that are directed to helping my children …and that does not mean enslaving them in debt for shabby second rate houses or shonky limited life apartments ……all to keep “THE ECONOMY “ ( driven by the developer class ) growing ………….

  4. Be interesting to see what Mining Bogan’s friends and relatives think of Morrison. These people probably still love him because they still get their franking credits. It’s like the boomercentric work place I zombie into everyday. Sure as sh1t these people will vote for the Liberals even as the PLA has a welcome home parade down George Street in Sydney.

  5. TailorTrashMEMBER

    What happened to macro afternoon ?……a harbinger to macro goodnight? … surely not ? ……

    • ErmingtonPlumbingMEMBER

      Who does the ownership of this Site really belong to?
      Dave and Leith? or the rank and file of what is!
      I say it belongs to the Members and the moochers and smoochers who turn up regularly but refuse to pay for membership.
      This is our site!
      And we demand the return of Macro Afternoon!

  6. Jumping jack flash

    “there are already effectively two Chinese federal electorates. What happens when it becomes four or eight?”

    This is an excellent point but one that cannot be raised due to anti-discrimination, and being branded racist if anyone does.

    It’s all about the debt growth and there’s two approaches to growing it infinitely. The first is to import a lot of people who don’t have debt and then pay them enough so they can take the required amounts of debt on (this isn’t working as originally intended).

    Or the second, which is to accept “foreign investment” and “foreign investors”, which is just a thin disguise for “people who have heaps of money for whatever reason and are willing to give it to the poor rube, who after taking on an enormous mountain of debt to hand over to someone else to make that someone else instantly and insanely rich, is waiting patiently for someone to do the same for them”

    And fortunately the wealthy Chinese fit this second case perfectly. And it’s a good thing too, Because if nobody was to hand these poor rubes the mountains of debt they need then the whole economy would stop with them!

    All they’d be left with is the best part of a lifetime of hardship to repay their debt mountain, and not much to show for it.

    And that just wouldn’t be fair, would it, so it is the government’s duty to ensure this doesn’t happen!