It’s offical: Australia sets course for China divorce

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Precisely as forecast at MB, China’s trade war on Australia is really upon itself. Commodities are fungible and will always be shipped no matter what China does. It can preference its suppliers but cannot withdraw its demand from global markets so we will fill the supply gaps created by it shifting procurement elsewhere. New charts from the Lowy Institute:

Moreover, the divorce proceedings are now official. The one policy that the Morrison Government has right:

  • Australian exporters hit by sanctions have largely rebalanced their exports elsewhere.
  • This includes all affected commodities.
  • Wine is the laggard.
  • A new initiative is underway for “Team Australia” to win in ex-China Asia, launched by Trade Minister Dan Tehan.
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As the spurned CCP whines like a bunny boiler in the corner:

  • The CCP Canberra Embassy summoned journalists to watch pro-Xinjiang video propaganda.
  • Uyghur community condemns charade.
  • Enjoy!

Or not:

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This what you want for your kids?

This what you want for your kids?

Australia must divorce from China as fast as humanly possible.

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.