Stephen Koukoulas, managing director of Market Economics and former chief economist of Citibank, shared an article on Australia’s post-Covid recovery being as much about Beijing as it is Canberra.
According to Koukoulas, rather than picking fights with China, the Morrison government should thank China for helping the country out of the Covid-induced recession.
Koukoulas further stated that the substantial Chinese imports from Australia have led to an unexpected advantage for the local economy during the pandemic.
More than one-third the value of Australia’s annual exports of just under half a trillion dollars are purchased by China.
Likewise, the iron ore price reached a record A$230 per tonne, due to the demand from China.
However, the Chinese government has imposed restrictions on a number of Australian goods lately due to Australia’s insistence on exploring Covid-19 origins and movements of Chinese naval ships in the South China Sea.
However, despite trade tensions, Australia has been able to continue its overall export performance.
Economists claim that it is imperative that Australia gave credit to the strong Chinese economy for its good fortunes, as it will help the country frame its policies ahead of the Covid-19 crisis.