Australia turns its back on China in trade tension with US

While the tensions between the United States and China are running out, Australia consciously chooses distance. A recent proposal from the Chinese ambassador to join forces at the American rates, was resolutely rejected by the Australian government.

Australia opts for strategic distance

The United States, led by President Donald Trump, unexpectedly raised their rates on Chinese goods to 125%yesterday. At the same time, Australia is now also hit by a 10% input rate, despite his role as a loyal ally of the US in the Indo-Pacific. According to Prime Minister Anthony Albanese, the rate is “completely illogical”, but he emphasizes that there will be no countermeasures.

Deputy Prime Minister Richard Marles responded sharply to the proposal of the Chinese ambassador Xiao Qian. “We are not going to hold hands with China in any worldwide battle,” said Marles on Sky News. The message is clear: Australia opts for independence in his trade policy.

Instead of choosing a party in the geopolitical game, Australia wants to broaden his trade. New agreements and reinforced relations with the European Union, India, Indonesia, the Middle East and the United Kingdom must ensure more economic resilience.

China is looking for supporters

The call from ambassador Xiao came in the form of a column in Dagblad The Age. He stated that Australia could defend the international trading system together with China and other countries. With this Beijing responds to the concerns of countries that are in the question of being stuck between two economic superpowers.

But Australia seems to have learned his lesson after years of economic dependence on China, which is still good for almost a third of Australian exports. The current change of course is therefore not a response to an incident, but a conscious strategy for the long term.

In the meantime, the Australian Central Bank warns that global uncertainty about rates and trade restrictions makes companies more reserved with investing. Consumer expenditures could also come under pressure.

The American decision to partly meet other countries with a 90-day break on the increased import duties, but to put pressure on China, causes relief and nervousness worldwide. With more than 7%, Bitcoin (BTC) raised the air to a peak of $ 83,000 and the S&P 500 even made the biggest profit of almost 10% since 2008.