A basic view of a Australian flag is seen outside the Great Hall of the People on April 9, 2013 in Beijing, China.
Feng Li|Getty Images
Australia should diversify its economy to rely less on China, its biggest trading partner, Treasurer Josh Frydenberg stated on Monday, as he alerted companies to brace for brand-new stress with Beijing.
Australia’s relations with China soured after it prohibited Huawei from its 5G broadband network in 2018 and cooled even more after Canberra required an independent examination into the origins of Covid-19, initially reported in China in 2015.
Beijing reacted by enforcing tariffs on Australian products, consisting of barley, red wine and grapes.
“It is no secret that China has recently sought to target Australia’s economy,” Frydenberg stated in a speech in Canberra.
“Heightened strategic competition is the new reality we face, now and likely into the future.”
Frydenberg stated companies must take a look at brand-new markets, which have actually been opened as an outcome of current open market contracts.
Australia’s A$ 2 trillion economy is at danger of entering its 2nd economic downturn in as several years as its biggest states remain in extended Covid-19 lockdowns.
Despite the diplomatic stress, exports to China struck a record A$194 billion in the 12 months to July 31, up 72% from the previous 12- month duration on the back of strong iron ore need.
