Chinese Market Feeling Shortage Of Australian Farm Products
While trade tensions between China and Australia continues amid a downward spiral of bilateral relations, the Chinese for a change have started feeling the shortage of Australian products especially farm products like beef, fruits and wines. These Australian products have started vanishing from the Chinese market.
Though the Victorian state government of Australia has sent A dozen of Victoria-based companies to attend the fourth China International Import Expo (CIIE), according to a report by the Daily Mail on Sunday.
The Victorian government said the presence at the CIIE, an international import fair, will help connect their businesses to the world’s largest market to secure new contracts and help create jobs in the state. So this visit to CIIE is not for securing any Chinese market. Even Indian Companies are totally absent from the CIIE this year.
The deteriorating ties between Canberra and Beijing has cast a shadow on bilateral economic and trade cooperation and the move by Victoria state highlights the State of affairs. In fact the Australian federal government has been encouraging local companies to diversify away from China. Australian business community are now scouting for new markets which they have started finding in South Asia and further West.
Australian businesses initially felt the hardship at the loss of a massive market and had to search for ways to reengage with other foreign customers. The CIIE appears to be a perfect help in that it represents a window for Australia to demonstrate its strong selling power to the rest of world.
However, it should be pointed out that there is no shortage of opportunities on China-Australia economic and trade cooperation if China gives up its arrogance and hostility. The economic complementarity between China and Australia had earlier made the two natural trading partners but now it is a thing of the past. The relationship between the two countries has been deteriorating along with the bilateral trade.
Though the Regional Comprehensive Economic Partnership (RCEP) will come into force in January 2022, and countries that have ratified RCEP — which include China and Australia — are expected to embrace a great opportunity for economic and trade development. However the Chinese stance is not going to be of any help in this matter.
The past year has seen the Chinese Communist government exhibit escalated hostility toward Australia on every front. It politicized normal economic cooperation when Australia cancelled the lopsided Belt and Road Initiative deal signed by the State of Victoria.
Chinese Officials repeatedly made provocative moves and statements on issues concerning China’s core interests like Hong Kong, Xinjiang and Taiwan. They also escalated military tensions in the South China Sea.
The words and actions have poisoned the bilateral relationship and dealt a heavy blow to market confidence.
China is angry as Australia continues to follow the US to pressure China on the Taiwan question.
