US derisks China as Mad Albo rerisks it

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Mad Albo is not the benign slurring nerd he makes himself out to be. He is a globalisation extremist.

If he were PM at any time before 2011, this would have made for great governorship. But now, it is an absolute disaster in the making.

The world has turned, and Albo missed it. All of Labor did. It is only pretending that it isn’t listening to Loony Paul Keating. It is doing his bidding.

We should have known Albo was deluded about China. All of Labor is.

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China turned decisively autocratic in 2011 with the rise of Xi Jinping. Denial prevailed for the better part of a decade worldwide so Labor could pretend everything was fine through the assaults on Australia from 2015.

But Imperialist China became obvious in the COVID/Ukraine War shocks. In the 14 conditions to end democracy crisis, the new truth about CCP designs for Australia was written down in black and white and handed to the Australian people:

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Yet, even then, as China threatened to occupy Australia with a shot fired in anger, Albo blamed us:

“I remember Prime Minister [Kevin] Rudd giving a speech in China, in Mandarin, of course, which was critical of human rights issues, but done so in a way that also was designed to make clear our values but not designed to offend for offence sake,” he said.

“And what we were able to do, and the Howard government was able to do as well, is have relationships that built that economic interaction that was very important for us.

“This government seems to have presided over a complete breakdown of relationships.”

This displayed appalling political judgement and sense of the national interest that Albo spent the next eighteen months furiously backtracking to get elected.

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But the moment he came to power, the grovelling resumed. And now, eighteen months on, he has completely re-risked Australia’s trade profile:

Meanwhile, the US, our strategic sponsor, has gone entirely the other way:

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Mexico and Canada have replaced China as the top providers of goods to the US as a nearshoring push encourages more diversified supply chains.

The US imported about $203 billion in goods from China in the first six months of the year, 25% less than in the same period in 2022, based on the latest unadjusted data from the Commerce Department. The figures are not adjusted for inflation.

The US is preparing for the possibility of war with China. Albo is preparing to throw Australia down a lift well if it happens.

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.