Australia’s need for economic decoupling from China

Kód výsledku v 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>

Výsledek na webu

<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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Jazyk výsledku

angličtina

Název v původním jazyce

Australia’s need for economic decoupling from China

Popis výsledku v původním jazyce

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&amp;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.

Název v anglickém jazyce

Australia’s need for economic decoupling from China

Popis výsledku anglicky

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&amp;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.

Druh

D - Stať ve sborníku

CEP obor

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OECD FORD obor

50204 - Business and management

Projekt

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Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2020

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název statě ve sborníku

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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Počet stran výsledku

7

Strana od-do

70-76

Název nakladatele

University of South Bohemia in České Budějovice, Faculty of Economics

Místo vydání

České Budějovice

Místo konání akce

České Budějovice

Datum konání akce

5. 11. 2020

Typ akce podle státní příslušnosti

EUR - Evropská akce

Kód UT WoS článku

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