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Saturday 30 January 2021

Failing Chinese economic coercion

So what is China trying to do with all the tariffs imposed on Australia producers? They are attempting to use Australia’s democratic society against our national interests - they are engaging in foreign interference and need to be called out. 


Clearly the CCP are attempting to create divisions in Australian society, they know a free and open press can report opinions as they please. A free and open press, in their opinion, can be manipulated to create unrest, but their poorly conceived strategy is embarrassedly failing and they have no retreat strategy.

China doesn’t have this problem, they control the media and the people are dominated by state manufactured opinion. However, they are concerned as their control of the Chinese people relies on the promise of improved living standards by the totalitarian regime.

These rising living standards are appearing to become harder to deliver. The rest of the world is watching and are rightly concerned about the economic coercion of the CCP. The CCP are concerned about internal unrest and the potential to unravel their complete subjection of the Chinese people.

What we have learnt is China is an unreliable trading partner. Japan has long been a partner trading with Australia and has always been an honest and reliable partner. Australia has built up too much of a reliance on Chinese demand and that needs to change.

However, the rising iron ore price and required Chinese demand to develop their infrastructure program to aid their recovery ensures Australia still has an iron ore market. The iron ore income is improving Australia’s trade deficit funding the social programs of the pandemic.

This rising iron ore price created by Chinese demand is shielding Australian producers from the ravages of the Chinese economic coercion. Australian producers now have an opportunity to develop new markets.

Eventually, Chinese officials will target iron ore imports, that is unlikely in the short-term until they are able to secure new suppliers. By that time, Australian producers will have arranged new clients to diversify exports away from China.

Sure, it is more than likely that the Chinese government is humiliated by successful Australian calls for an independent enquiry into the origins of the coronavirus. The social unrest from a failed policy threatens the control of the CCP over the population and that scares them.

China is seeking to manufacture discontent in Australia, this has so far failed and further humiliated Chinese government officials. The architects of this plan care little about the next commodity whether it be wheat, beef, university education or dairy products.

The CCP is engaging in foreign interference, and so far, industry sectors can see through this transparent plan and refuse to become lobbyists for the Chinese government. So far, they are hurting themselves, Chinese steel mills are bearing the cost of increased costs.

Chinese consumers can no longer drink Penfolds wines after becoming accustomed to quality wine. Chinese consumers are prepared to pay a premium for Penfolds, sure, new markets will have reduced margins but they will be reliable supply chains.

The Chinese government is attempting to use democracy against Australia, they believe the Labor opposition will pressure the Liberal government to yield to it’s will - this policy is failing. Xi Jinping is humiliating himself, his policies are a failure and damaging Chinese national interests to soothe his massive and over-inflated ego.

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