China has launched a campaign of economic pressure against Australia in 2020. Australia had strong financial ties with China but now Australia is bracing a financial woe that is really threatening its trading partners. As per the reports of the Communist Party, they both have a devastating power as CHINA Import Bans. Both countries are rich in their own expertise as Australia is rich in resources and China is rich in commodities. In short we can say that these both complement each other as they are closely connected.
Why is China’s growth stalling?
The pandemic has hit the China market and the Chinese families are not receiving any type of financial support from its government. Private business owners are not showing any type of interest in investing and more on that the foreign investors are pulling their funds out of the country.
How does China affect the economy of Australia?
We all know that China is Australia’s largest trading partner. In short, we can say that Australia exports its goods to China and it also deals with other Australian goods and services. The trade and investment future of Australia completely depends on China. The economic relationship is strong and is extensive in nature.
What role does Australia play in the economic growth of China?
Australia plays a vital role in the economic growth of China. According to government data Australia supplies iron, ore, coal and liquefied natural gas to China. Strachan says that China’s slow market will bring an immediate impact on Australia’s export and commodity prices.
What is the impact of Australia and China in the Market?
According to a market survey, from the last 8 years Australia and China have seen a decline in the market and at the same time the property crisis worsens with developers. Evergrande and Country garden are facing numerous kinds of complications not only in finances but it also brought a great negative impact on the personal growth of its youth.
Youth is facing an unemployment problem in China and to let you know this is not a positive sign for the youth as well as for the country. Unemployment problem will slow down the investment and it regulates the government’s budget that automatically slows down the complete financial process.
A recession in China will depress the economic growth in Australia. The property rates have also declined with the time and we can’t ignore this factor at any cost.
China has now opened its doors on Thursday to Australian timber imports. It is a positive sign that now China wants to repair the relationship with Australia. We all are aware of the fact that timber is on the list of Australian exports and as the Chinese trade barrier was imposed in 2020 which falls under the COVID-19 pandemic period, the export of timber was also banned at that particular point of time.
The relationships of both the parties have improved since the center-left Labor party came into existence. Australian coal, cotton and copper have started their export journey to China.
As per the reports, Wong said during the joint press conference with her Philippine counterpart Enrique Manalo during a visit to Manila that he is happy with the development. The removal of trade impediments not only brings the benefit to both the parties but it will also bring a positive impact on the economic growth of the place. The youth starts feeling confidence as it brings an endless number of employment opportunities with it.
Chalmers told reporters that this step is crucial for all of us and we welcome the decision of lifting the trade restrictions. It is time to stabilize the relationship between Australia and China.
China’s decisions are also welcomed by the Australian Forest Products Association that represents a wide range of forestry and paper industries.
Conclusion
China and Australia took measures and they both have announced numerous small measures with the hope that both the countries will work on its economic growth and it will bring benefit to its country.