Australian government push to tap China market heats up industry debate about over-dependence
- Submissions to Australian parliamentary inquiry highlight how government’s China focus has hurt export opportunities to other markets
- Inquiry comes amid recent surge in debate about over-reliance, triggered by interruption of global supply chains due to Covid-19 shutdowns
Australia’s economy has become too reliant on China as a result of a government push for domestic industry to maximise exports to the world’s second largest economy, industry submissions to a government inquiry say.
Business groups also singled out Australian government policies, including management of bilateral relationships with Indonesia and India, as hurting access to alternative markets.
“Minerals exporting has been dominant for several decades. The top four items [iron ore, coal briquettes, gold, copper ore] here represent 82.7 per cent of our export dollars. This is out of proportion if we were to lose the trade,” the association said.
It also called on the government to use the Covid-19 pandemic and devastating bush fires early this year as opportunities to look at the long-term revival of Australian manufacturing, thereby easing the country’s reliance on foreign producers and owners.