They need us Why China needs Australia’s export lifeline
An economics expert has said China and Australia “need” each other, as Beijing continues to shun Aussie trade.
China’s meat imports are up by 21 percent on this time last year, but Australia is missing out with two abattoirs still on Beijing’s banned list.
Argentina and the US are currently filling Chinese demand for meat.
University of Technology Sydney economics professor Tim Harcourt told Today the restrictions were costing Australia, with meat exports down about 30 percent.
However, Professor Harcourt said China still “needed” Australia.
“They’ve got a billion people. They need food security. They need food,” he said.
“They need energy to basically fuel their enormous industrial engine and they need good quality education.
“300 million middle-class parents, very aspirational for their kids, they need Australia’s education. So the answer is, yes, they need us, and we need them.”
With China continuing to buy up Australian iron ore in large quantities, Professor Harcourt said Beijing’s apparent commitment to reducing emissions was an opportunity for Australian industry.
“I suspect there will be a lot of environmental-based technology and resources between Australia and China in the future as we become a green energy superpower,” he said.
Currently, about 70 percent of China’s iron ore is imported from Australia’s Pilbara region.
And Professor Harcourt said in the short term that dependence was likely to continue, particularly as China’s Belt and Road program had stalled in Africa.
“That’s why, I think, you’ve seen beef and barley and wine banned from China but they’re not going to touch the iron ore. They need it,” he said.
Professor Harcourt also pointed out that Australia was not the only country around the world to be battling Beijing’s displeasure.
“They’re upset with everyone. They’ve had fights with the Czech Republic, Ecuador, with the European Union, with the USA, Korea, Japan,” he said.
“They are having fights with everyone but naturally we’re concentrating on the one with us because what’s we know.”
And he stressed that the benefits of cordial relationships between Beijing and Canberra went both ways.
“Ultimately, they trade relationship with us is very important to them, so it’s not going to pay off very well for them economically at all,” Professor Harcourt said.
