China, Australia decoupling labelled ‘zombie economic idea’ amid coronavirus fallout
- Debate about Australia’s over-dependence on China has ramped up recently, triggered by interruption of supply chains during China’s January Covid-19 shutdowns
- Report by Australia-China Relations Institute at the University of Technology Sydney questions the need for Australia to decouple from its main trade partner
Calls for Australian businesses to diversify away from China as their main trading partner are nothing more than a “zombie economic idea” that is being used as a political tool to expedite the decoupling of the two countries, according to a report by the Australia-China Relations Institute at the University of Technology Sydney.
“A significant trade exposure to China is not, in itself, compelling evidence that Australian businesses have been irresponsible in their risk management, nor that the country as a whole is too dependent,” said the report by James Laurenceson and Michael Zhou.
“In terms of exports, Australian businesses selling heavily into the Chinese market stand to lose the most if that market is disrupted. This provides a strong incentive to be well-informed about both opportunities and risks, and take steps to mitigate the latter.
That some Australian entities like universities have attracted particular criticism owing to a significant exposure to the Chinese market misses the national interest benefit they have delivered, as well as the broader context
“That some Australian entities like universities have attracted particular criticism owing to a significant exposure to the Chinese market misses the national interest benefit they have delivered, as well as the broader context.”