Our model suggests half a billion workers would lose their jobs worldwide, including one fifth of employed Australians. The worth of financial assets would fall by one fifth on average, and by one quarter in Australia.
If the U.S. is forced to sell half of its direct investments in China, that would cost American investors $25 billion a year in capital gains and up to $500 billion in GDP losses, the report said. U.S. businesses risk losing global competitiveness if sweeping policies force separation from China, the report said.
Trade and investment
China is Australia's largest two-way trading partner in goods and services, accounting for nearly one third (31 per cent) of our trade with the world.
The value of Australian goods subject to Chinese trade restrictions is still small at 4.5% of total exports. If a larger share of goods was impacted (like iron ore which is worth 27% of total exports), it would have a larger negative short-term impact on the economy. But this would also impose a greater cost on China.
Why it matters to Australia (and beyond) Australia's economic fortunes are enmeshed with China's, even as we're warned its military threat is the worst in decades. China is easily Australia's largest two-way trading partner, accounting for about a third of all trade.
Relations with China are one of the most important aspects of Australia's foreign policy. As an emerging great power in our region with whom Australia is developing a major economic relationship, good relations with China will become an increasingly prominent feature of Australia's international interests.
Australia is China's sixth largest trading partner; it is China's fifth biggest supplier of imports and its tenth biggest customer for exports. Twenty-five per cent of Australia's manufactured imports come from China; 13% of its exports are thermal coal to China. A two-way investment relationship is also developing.
Why it matters: The United States imports roughly half a trillion dollars in goods from China, including clothing, shoes, electronics, furniture, and household appliances. Those imports help improve the lives of many Americans, particularly those in low-income households who benefit from lower prices on everyday goods.
International trade and investment is critical to the Australian economy, creating jobs and prosperity, and opening up opportunities for Australian businesses to expand. Find out more about Australia's trade and investment agenda.
China Exports to Australia was US$66.38 Billion during 2021, according to the United Nations COMTRADE database on international trade. China Exports to Australia - data, historical chart and statistics - was last updated on January of 2023.
The United States and United Kingdom are the biggest investors in Australia, followed by Belgium, Japan and Hong Kong (SAR of China).
i No country in the world is self-sufficient in all its needs. Goods produced by one country are required by the other country and vice-versa. Hence differences in resources needs and development among nations creates conditions for international trade between them.
Today, the United States imports more from China than from any other country, and China is one of the largest export markets for U.S. goods and services. This trade has helped the United States in the form of lower prices for consumers and higher profits for corporations, but it has also come with costs.
Without international trade, few nations could maintain an adequate standard of living, particularly those of smaller size. With only domestic resources being available, each country could only produce a limited number of products, and scarcity would be prevalent.
China imports food in every major category, but it is only truly dependent on imports for soybeans, of which it imports 85% of its consumption, mainly from the United States and Brazil. China itself produces over 90% of the wheat, rice, and corn it consumes, as well as over 85% of all the meat it consumes.
The Australia–China trade war is an ongoing trade war between Australia and China. The exact date of when the trade war begun is debated, however it is understood it began in either 2017 or 2018.
Australia's largest export markets are China (32 percent of total exports), Japan (16 percent), South Korea (7 percent), the US (5 percent), India (4 percent), New Zealand, Singapore and Taiwan (3 percent each).
Our model suggests half a billion workers would lose their jobs worldwide, including one fifth of employed Australians. The worth of financial assets would fall by one fifth on average, and by one quarter in Australia.
Australia has plentiful supplies of natural resources, including the second largest accessible reserves of iron ore in the world, the fifth largest reserves of coal and significant gas resources.