Opinion | Australia could be the big loser in a US-China trade deal, not that Donald Trump seems to care
- Australia sticking its neck out for the US on the issue of Chinese telecoms giant Huawei will not stop America from striking a trade deal with China that could result in Australian exports suffering
Vital because China soaks up one-third of Australian exports. The Australian budget released last week was replete with tax cuts; the nation has gone more than 25 years without a recession. Australia would not be boasting this without access to China’s growth.
The US ambassador’s response confirms that the Trump administration wants to close the US$400 billion trade gap with China and, in a settlement between the world’s biggest economies, Australia’s interests won’t count.
Indeed, Australia’s ambassador to Washington, Joe Hockey, seems to have missed the point of his very mission. He was quoted on February 3 urging America not to settle for a “pyrrhic victory” against China, implying that the US should go all out in its trade war. That a deeper trade war might hurt Australia didn’t seem to figure in his understanding of diplomatic duties.
Liquefied natural gas (LNG) underlines Australian vulnerability. It’s widely assumed that, as part of a deal with the US, China will commit to buying more American LNG.