A UK global security review (Global Britain in a Competitive Age) also views China as a major challenge (along with Russia) with the UK Government now to play a greater role in the Asia-Pacific region alongside Australia and Japan while increasing the nuclear deterrent capacity of such warheads on its submarines from 180 to 260.
Japan’s ambassador also told Australia that is “not walking alone” in its trade war against China, urging Australia to pull away from China towards Japan reducing all tariffs on Australian bottled wine to zero after China placed tariffs on Australia wine up to 212 per cent.
Trade with allies (and others) may help offset our current trade reliance with China.
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For example, China plans to reduce its steel production (currently 55 per cent of global production) which has the potential to drastically reduce the price of Australia’s iron ore exports which has already declined greatly from the May 2021 high of $US237 ($A317) a tonne.
With Australia currently accounting for 60 per cent of China’s iron ore imports, it is reported that the CCP has a plan to slash its reliance on Australian iron ore by 2025 through a number of strategies including alternative suppliers (Russia, Myanmar, Kazakhstan and Mongolia) and a greater use of scrap steel to account for 30 per cent of crude steel production.
China also has its own considerable issues which will complicate its leadership aspirations that go well beyond the CCP’s constant determination to quash any domestic social dissent.
With China having borders with 14 countries, its annoyance to India alone could lead to increased military spending over time if the recent border clashes with troop fatalities are repeated.
While China is now much more aggressive with regard to strategic choke points, especially the Straits of Malacca and the South China Sea, its need for raw materials means that any Western-led alliance could potentially cut off vital trade with China which is now the world’s single biggest importer of crude oil and iron ore alone.
To conclude, the existence of a powerful CCP will ultimately mean new strategies for Western nations including trading less with China; cooperating more with nations with less respect for human rights, including the Philippines under President Rodrigo Duterte; and Australia even hosting nuclear weapons.
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But, in the end, Australia will remain an important Western liberal democratic example that contrasts greatly with the type of society displayed by the relatively ruthless and authoritarian CCP.
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