Wednesday, 2 December 2020

A " Trade War " Response !

 Officially. there is no other world country that we would consider to be the " enemy "  of Australia, but China is fast assuming that role.  The Mandarins in Beijing have consciously set out to do us economic harm by selectively placing trade embargoes on selected categories of goods which constitute a vital part of our export trade.

They have carefully choked off Australian timber, barley and wine in the knowledge that China was our biggest customer for these items and the trade loss will be hard for us to replace.  Now they are running insulting caricatures depicting Australian soldiers threatening harm to children in Afghanistan.   This is playing on a scandal that Australia revealed to the world by way of a public enquiry.

Australia's free press presented this story to the world in all its gory detail and the recriminations are ongoing.   We could be tempted to retaliate by reminding the Chinese diaspora of how China massacred its university students in Tiananmen Square in 1989 by sending in tanks and how this is scrupulously scrubbed from any mention in Chinese history.  We could also retaliate by reminding the Chinese people in Hong Kong and Taiwan of the Uighers, Muslims who are locked away in concentration camps in Xinjiang province being " reeducated " in every possible way.

Australia can not win a trade war with China. Openly retaliating will only add more items to the ongoing embargo and it is obvious that we must develop new markets in other parts of the world for the items that China is refusing.   Trade is a hard slog and most Australian business people head for the huge market represented by China. In future, we should concentrate on the lesser countries that make up more of the world and widen our market share.

That old proverb about not putting all our eggs in one basket is a truism.  We need to widen our market share and this unexpected Chinese belligerence now makes that a necessity.  It is important that Australian industry make representation to the smaller, more scattered markets to replace the volume that was previously being shipped to China.

There is also another option that rests in the hands of ordinary Australian citizens.  We should avoid buying items that are clearly marked " made in China ".   Embargoes are a two way deal.   If China refuses to buy the goods we produce we should retaliate in kind, and that can very quickly become affective.  We are on the cusp of Christmas and that is the prime purchasing season in which the avoidance of Chinese made goods will quickly show in statistics.

China is desperate to establish a car industry and Chinese vehicles are now on offer in Australia at competitive prices.   That Chinese embargo should be considered when buying a new car and could result in the import being rejected. Those are the outcomes that cause the Mandarins in Beijing to have second thoughts.

This blog is being produced on a Chinese made Lenovo computer.  When I needed a new computer I reviewed the brands offering on the market and decided the Lenovo was competitive, but when a replacement becomes necessary I will not be buying Chinese made in the present circumstances

It is the right time for the Australian public to send a clear message.to the Mandarins in Beijing that trade is a two way deal !

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