While citing Australian Agriculture Minister David Littleproud’s refusal to wage a trade war with China, Global Times said the statement suggests that recent trade relations between China and Australia may be limited to the barley and beef, unless there is a new conflict between the two. sides.
Given the principles of free trade and reciprocity to which China has long adhered, there is reason to believe that China will not take the initiative to start a trade war until one side deliberately increases tensions .
However, we hope that the Australian can show more goodwill and take more steps to restore his relationship with China’s main trading partner.
It would be of little concern if Australia wanted to go to the World Trade Organization to seek a tariff resolution with China. Her willingness to get back on track to resolve trade disputes is welcome, as China has always supported the settlement of trade disputes under open and transparent international trade rules.
On the Chinese side, there is ample evidence that its decisions regarding imports of beef and barley were made on the basis of facts. According to Chinese statistics, Australian barley imports into China increased by 67.14%, from 3.87 million tonnes in 2014 to 6.48 million tonnes in 2017, as the price of imports fell by more than 31% from $ 288.72 a tonne to $ 198.05 a tonne.
Based on past experience, China will not be the first to take the provocative step, but it should be noted that any further attempt to confuse malicious COVID-19 investigations with trade would only exacerbate tensions, which which would drive away bilateral trade.
The news adds to the cautious optimism of the market, which in turn promotes Australian strength. However, the new update on the fight between the United States and China seems to weigh on the feeling of risk at the time of the press. That said, the AUD / USD pair is hovering around 0.6600 at press time early Thursday morning in Asia.