BRICS is becoming the big kid on the block

With India’s embracing of BRICS, its commitment in time of any conflict to the QUAD must be looked at very closely. The QUAD is portrayed as an important strategic agreement to Australia.

We have witnessed China de-couple trade with Australia. Why buy beef from Australia when it can be bought from Brazil? Expect more de-coupling as China utilizes the Belt and Road even more. With the sharp change in China’s business ideology, public enterprises are growing in influence and importance. Australian corporations must see these shifts and try to couple up with this change in the nature of China trade.

According to BRICS diplomats within ASEAN, Australian trade diplomats are already fighting a de facto trade war, where the booty is market-share. For example, trade diplomats have long informally agreed which markets should be deemed traditional for products from respective exporting countries. Breaking these informal agreements is considered an act of war, be it for beef, lamb, fruits, or services. Australia will not be retaliated by one country, but all the BRICS members, if it breaches these understandings. This is a trade war Australia cannot win and is damaging Australia’s reputation, where ordinary citizens are not even aware of it.

The US pivot Mark I, II, & III to the Indo-Pacific in contrast, lacks the lustre of the Chinese advance into the region. They have been based upon the premise of competing rather than cooperating in mutual coexistence. One of the US misunderstandings is that China is not alone, it’s bringing a new trade regime with it to the region. Australia may have US military hardware on its territory, but through the cultural, political, and economic paradigms within the region runs the risk of isolating itself. These are areas where the US alliance cannot assist Australia.