Australia diversifying its economy to reduce dependence on China

Australia diversified its economy to reduce dependence on China - Photo 1.

Australian Finance Minister Josh Frydenberg – Photo: REUTERS

On September 6, Reuters news agency quoted the content of a speech Mr. Frydenberg is expected to give at a leadership forum at the Australian National University on the same day.

In it, Mr. Josh Frydenberg said that Australian businesses need to increase their ability to respond flexibly by focusing on exports to countries other than China.

“We are facing increasing strategic competition. We will see more overlapping economic and security interests,” said Mr. Frydenberg’s speech.

According to Mr. Frydenberg, China is clearly targeting the Australian economy. “They’ve targeted our agricultural and resource sectors, with measures affecting commodities like wine, seafood, barley and coal,” he said.

He also warned businesses about the risk of Beijing continuing to use its economic power to put pressure on Canberra.

Australia-China relations deteriorated after Australia banned Huawei Group from participating in the development of 5G network infrastructure in the country in 2018.

Next is Canberra’s call for an independent investigation into the origin of the COVID-19 epidemic from China. Beijing has responded with tariff sanctions on Australian goods.

Tensions have caused Australia’s exports to China in the 12 months to June 2021 to drop by $5.4 billion.

However, Mr Frydenberg said Australian exports to other countries increased by $4.4 billion.

“Many companies and industries affected by trade restrictions from China have succeeded in redirecting exports of goods to other places. This could be an example of large volumes of goods. than are trading on global markets,” said the Australian minister.

According to the newspaper Sydney Morning Herald, Australian Prime Minister Scott Morrison a few days ago had a phone call with US President Joe Biden about holding a summit later this year.

The meeting will have the participation of leaders of the US, Australia, Japan and India, belonging to the “Diamond Quartet” group to deal with the rise of China.

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