China crucial to Australia's post-Covid-19 recovery: Oz uni study
CHINA is poised for a speedy economic recovery, positioning itself to help Australia do the same, according to a report posted by the University of Sydney, reports Xinhua
23 June 2020 - 19:00
Australia's lucrative trade relationship with China relies on a hasty return of Chinese consumer demand, which now appears more likely thanks to successful strategies introduced by the Chinese authorities in tackling Covid-19, says the university's business school's lecturers Wei Li and Hans Hendrischke.
They said it would not be the first time China helped Australia out of crisis, citing a time when Australia's 2008-09 Global Financial Crisis (GFC) when China became its Australia's top trading partner, accounting for 13 per cent, or US$39.6 billion of total trade, largely due to its demand for Australian iron ore.
Ten years later, in 2018-19, two-way trade with China had surpassed $157.3 billion, well over double the volume of trade with Australia's second-ranked trading partner, Japan, according to Australian Government figures.
Trade had also diversified to include more small and medium sized Australian businesses, with China's middle-class developing a taste for Australia's food, beauty and health products, as well as service based industries like education and tourism.
'The China trade effect that was concentrated on the resources industry after the financial crisis is now spread much more widely across Australia's rural and urban industries,' the report said.
Those industries rely on the speedy post-Covid-19 recovery of Chinese consumer demand, which the authors say is already showing signs of occurring largely thanks to the country's savvy approach to economic stimulus.
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