Australian Trade with the PRC

Australia is finding much of its exports to the People’s Republic of China piling up in PRC ports (Australian wine is the proximate subject of the WSJ piece at the link)—not because the customers no longer want them but because the PRC government objects to Australian policies designed to limit PRC meddling in Australian domestic affairs.

From that, there’s this remark by Rob Taylor, the piece’s author:

Australia faces an awkward diplomatic balancing act in trying to address concerns about political interference while relying heavily on China for its economic well-being.

Stop being dependent on the PRC for trade. It’s as dangerous to be dependent on a single trading partner as it is for a business, or a nation, to be dependent on a single product.

There are lots of other markets around the world—and throughout Asia—for Australian goods and services. It’ll be expensive for Australia to wean itself off the PRC, but the payoff will be well worth it.

Other nations doing business with the PRC should consider the same weaning. After all, what’s the value of a large potential customer base when its government uses that connection for an economic Anschluss?

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