A recent study commissioned by the Australia China Trade Commission showed that bilateral trade between China and Australia helped each Australian household earn an additional 2500 Australian dollars (1589 US dollars) in the previous fiscal year, equivalent to 4.5% of their disposable income per person.
Among them, households in Western Australia benefit the most, with the additional income of AUD8500 per year mainly coming from China's investment in the resource industry.
The most obvious manifestation is that after the signing of the bilateral trade agreement in 2015, Australia's economic relationship with China supported approximately 570000 jobs, which means that Australia's unemployment rate has decreased by 0.25%.
However, a few years later, Australia fooled around with the United States, even resorting to reducing dependence or even decoupling at its most radical stage. However, Australia's three consecutive administrations conducted internal research on the feasibility of decoupling from China, but all stated that this was impossible.
Data shows that China is Australia's largest trading partner, accounting for approximately one-third of Australia's total exports and a quarter of its total imports in 2022. The two-way trade in goods is worth $195 billion.
About one-third of Australia's manufacturing imports come from China, and 7% of its agricultural imports also come from China. China is also a major buyer of Australia's natural resources and agricultural products, with minerals and fuels accounting for over 70% of Australia's total exports to China.
The integration of commodity trade has led to a relatively strong economic stickiness, which ultimately manifests in financial markets. For example, outside of the US dollar, among the currencies of Western countries, the Australian dollar is the most eye-catching when looking at the Chinese economy compared to the Chinese yuan.
A conclusion can also be drawn from another logic.
In recent years, with the adjustment of China's economic structure, especially in the real estate sector, there have been many uncertainties in steel production. Additionally, Australia is extremely nervous, with resources including iron ore being the main source of income for Australia, and the volume sold to China is considerable.
Although Morrison had various troubles with China during his time in power, Western Australia, Australia's main revenue state, had always been at odds with him, which is why.
You should know that not only the United States and the European Union, but also other countries cannot afford to consume resources comparable to China's, not to mention Australia's other competitors - Brazil, Russia, and so on.
The problem is that since exports to China are the main source of Australia's economy and iron ore and other commodities are difficult to sell in large quantities, we need to find ways to deal with them. After all, there are other commodity trade and the volume is not small.
So with the new government coming to power, Australia took the initiative to establish friendly relations with China, and trade between the two sides gradually deepened, with previous restrictions gradually decreasing, such as cotton, barley, coal, and so on.
Of course, there are still some that have not fully recovered, such as wine, which has been the loudest cry in Australia recently. Of course, on the surface, the Australian government is very tough, saying that if we do not lift the restrictions for a day, the lawsuit in the WTO will not end.
At present, it will take time for many goods to recover to their previous levels, and we will also observe that the United States will continue to converge a few years ago. Now it is clear that Australia, as its ally, is constantly suppressing China's development and has means. Of course, it will not be as extreme as its predecessor.