Australia’s need for economic decoupling from China
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F60076658%3A12510%2F20%3A43901773" target="_blank" >RIV/60076658:12510/20:43901773 - isvavai.cz</a>
Result on the web
<a href="http://ocs.ef.jcu.cz/files/site/INPROFORUM%202020_ConferenceProceeding.pdf" target="_blank" >http://ocs.ef.jcu.cz/files/site/INPROFORUM%202020_ConferenceProceeding.pdf</a>
DOI - Digital Object Identifier
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Alternative languages
Result language
angličtina
Original language name
Australia’s need for economic decoupling from China
Original language description
Australia currently has a high economic interdependence on China. Australian exports to China are primarily in the energy market, featuring coal, gas and iron ore, and its imports from China are largely in manufactured items, where valued adding processes occur. Viewed from David Ricardo’s theory of comparative advantage the trading relationship between Australia and China appears ideal, as each nation is providing the other what they are best at producing, however, the reality is quite different. Cultural, political and ideological differences, China’s expansionary policy in its region (as witnessed by the 9-dash line concept), and the treatment of its own minority groups, as examples, are in juxtaposition to Australia’s identity as a free nation that, whilst geographically located in Asia, has a distinct Western allegiance, largely due to its recent colonial historical developments. This paper considers the current relationships between Australia and China, not only in relation to trade, but also in relation to geo-political factors and the increasing influence China has been exerting through strategic investment in Australia. In order to bring more balance to Australia’s exports and imports, and reduce the inherent risks associated with high reliance on one trade partner, Australia needs to economically decouple from China. Specific long-term changes are proposed in two areas: taxation, through accelerated depreciation write-off in R&D developments; and modifications to the current export market development grants, as a way to influence and encourage Australian businesses to diversify their exports, both in terms of export destinations and in the mix of exported items. These initiatives should begin to create a shift away from exporting primary energy products, such as coal, gas and iron ore, and towards other more value-added processes and products.
Czech name
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Czech description
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Classification
Type
D - Article in proceedings
CEP classification
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OECD FORD branch
50204 - Business and management
Result continuities
Project
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Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace
Others
Publication year
2020
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Article name in the collection
Proceedings of the 14th International Scientific Conference INPROFORUM: Business Cycles – more than Economic Phenomena
ISBN
978-80-7394-824-5
ISSN
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e-ISSN
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Number of pages
7
Pages from-to
70-76
Publisher name
University of South Bohemia in České Budějovice, Faculty of Economics
Place of publication
České Budějovice
Event location
České Budějovice
Event date
Nov 5, 2020
Type of event by nationality
EUR - Evropská akce
UT code for WoS article
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