China is trying to create some daylight in the relationship between USA and Australia while annoying USA by increasing Chinese influence in USA's back yard. China is becoming increasingly engaged in all parts of the world in development, finance and trade.

China is using same policy with beef as China lifts ban on Brazilian beef.

This is nothing new and mirrors what Japan did in the 1980s which may have been a factor in the economic malaise Australia suffered from 1980 to 2000.

Australia needs to diversify it's export markets as well.

Manufacturing in Australia is out of the question because it has never been commercially viable because the Australian dollar is bloated by resource export earnings lifting wages and other costs in Australia.

China diversifies resources away from Australia


Quote:

China will use its growing relationship with Brazil to pressure Australia into running a more independent foreign policy, according to analysts and academics, as Beijing seeks to use its economic muscle for strategic influence. Chinese Premier Li Keqiang signed $US50 billion ($63.5 billion) worth of deals during a state visit to Brazil last week, including a loan facility to help iron ore miner Vale increase production. In a sign that Beijing is increasingly looking towards Brazil for food and mineral commodities, China also pledged to lift a ban on Brazilian beef. "If Australia gets closer to the United States we will see China increase its purchases from Brazil, while reducing its trade with Australia," said Wu Xinbo, Dean of the Institute of International Studies at Fudan University. "The alliance between Australia and the US is a major constraint on the relationship between China and Australia." Relations between Washington and Beijing have become increasingly frosty of late as the two super-powers clash over China's handing of territorial disputes in the South China Sea. The US also angered China last week by accusing six of its citizens of industrial espionage, relating to sensitive wireless technology. While Australia has largely stayed out of the intellectual property disagreements, Canberra was drawn into the South China Sea dispute after Washington said it planned to station B-1 strategic bombers in Northern Australia to counter Beijing. China's state media has said this would be highly detrimental to relations between Beijing and Canberra, which had been smooth in recent months. Li Xingchuan, President of the government-backed China Metallurgical Industry Planning Association, said a country's political relationship with Beijing was the most important factor in determining its economic relationship. "Brazil has always been a good friend of China's and they run an independent foreign policy," he said. "The Australian government is good but they always follow the US." Spectre of trade rivalry The spectre of greater trade rivalry between Australia and Brazil comes as China seeks to shore up security of supply in food and mineral commodities, while also ensuring it is not overly reliant on any one country. Australia producers dominate the imported beef market in China and have benefited most from the ban on Brazilian beef since late 2012. Australia supplied just over half of all the beef imported to China last year, but its market share is expected to decline after Premier Li announced the ban on Brazilian beef would be lifted. With the financial backing from Beijing, Vale plans to lift its overall production of iron ore to 450 million tonnes by 2018 – from 330 million tonnes this year – a move likely to put further pressure on the already weak iron price. "This is the kind of thing Japan did in the 1980s - spreading investment around the world to get as much supply as possible which then had an impact on prices," said Mark Beeson, Professor of international politics at the University of Western Australia. "China has been quite heavily influenced in this by Japan. Despite all the talk of 'globalisation' and competitive pressures, China's part of an East Asian tradition where powerful states still try to shape an economic playing field that is often far from level." As the iron price halved to below $US60 tonne over the last year Australia's big three miners – BHP Billiton, Rio Tinto and Fortescue Metals Group – increased their market share in China at the expense of local players and Vale. Australian producers accounted for 59 per cent of China's imported iron ore last year, according to China's Customs Bureau. This is up from 51 per cent in 2013 and compares to just 18 per cent market share for Brazil last year. Mr Li said it was too early to tell by how much Brazil would increase its iron ore market share in China, but thought it should receive a boost from the deal to increase supply. "The Australian government needs to work more closely with China. If there are many troubles in the political relationship how can the economic relationship be smooth?" he said.

Svengali wrote on May 26^th, 2015 at 10:56am:

China is trying to create some daylight in the relationship between USA and Australia while annoying USA by increasing Chinese influence in USA's back yard. China is becoming increasingly engaged in all parts of the world in development, finance and trade. China is using same policy with beef as China lifts ban on Brazilian beef. This is nothing new and mirrors what Japan did in the 1980s which may have been a factor in the economic malaise Australia suffered from 1980 to 2000. Australia needs to diversify it's export markets as well. Manufacturing in Australia is out of the question because it has never been commercially viable because the Australian dollar is bloated by resource export earnings lifting wages and other costs in Australia.

That's not true., If you'd watched lateline business last night, china is facing the same problems as any developing country with rising wages. They know they have to move up the value adding food chain and follow in Germany's lead in producing high tech value added goods instead of cheap arse nickel and dime 2 dollar shop items.

Of course the aussies gave up value adding long ago and found that there was more money in blindly ripping the punters off on imports rather than manufacturing them :(


Quote:

China-Australia business partnership TCL Corporation have come from nowhere to become the third largest screen manufacturer in the world behind Samsung and LG. Ticky sat down with TCL Corporation's international general manager Kevin Wang.

http://www.abc.net.au/news/2015-05-25/china-australia-business-partnership/6496118

There are a still a lot of Chinese that need to get onto the first step which will take many decades before economic progress proliferates to the bottom levels of Chinese society.

Meanwhile other Chinese will climb the economic pyramid.

Chinese appear to be better at mastering the marriage of communism and capitalism than any other communist society.

Svengali wrote on May 26^th, 2015 at 12:08pm:

There are a still a lot of Chinese that need to get onto the first step which will take many decades before economic progress proliferates to the bottom levels of Chinese society. Meanwhile other Chinese will climb the economic pyramid. Chinese appear to be better at mastering the marriage of communism and capitalism than any other communist society.

And increase their carbon footprint and ensure AGW become a reality and further condemn their country to localised environmental degradation.

The “developing” world needs a good clean out…..

HooYAY its FriYAY wrote on May 26^th, 2015 at 12:12pm:

Svengali wrote on May 26th, 2015 at 12:08pm: There are a still a lot of Chinese that need to get onto the first step which will take many decades before economic progress proliferates to the bottom levels of Chinese society. Meanwhile other Chinese will climb the economic pyramid. Chinese appear to be better at mastering the marriage of communism and capitalism than any other communist society. And increase their carbon footprint and ensure AGW become a reality and further condemn their country to localised environmental degradation. The “developing” world needs a good clean out…..

HooYay believes it's only the Chinese who should make the sacrifices to save the world. HooYay offers no contribution.

Svengali wrote on May 26^th, 2015 at 12:31pm:

HooYAY its FriYAY wrote on May 26th, 2015 at 12:12pm: Svengali wrote on May 26th, 2015 at 12:08pm: There are a still a lot of Chinese that need to get onto the first step which will take many decades before economic progress proliferates to the bottom levels of Chinese society. Meanwhile other Chinese will climb the economic pyramid. Chinese appear to be better at mastering the marriage of communism and capitalism than any other communist society. And increase their carbon footprint and ensure AGW become a reality and further condemn their country to localised environmental degradation. The “developing” world needs a good clean out….. HooYay believes it's only the Chinese who should make the sacrifices to save the world. HooYay offers no contribution.

Naaaw, you can see you’re dilemma but can’t acknowledge it, huh.

Twice in one day!!

HooYAY its FriYAY wrote on May 26^th, 2015 at 12:38pm:

Svengali wrote on May 26th, 2015 at 12:31pm: HooYAY its FriYAY wrote on May 26th, 2015 at 12:12pm: Svengali wrote on May 26th, 2015 at 12:08pm: There are a still a lot of Chinese that need to get onto the first step which will take many decades before economic progress proliferates to the bottom levels of Chinese society. Meanwhile other Chinese will climb the economic pyramid. Chinese appear to be better at mastering the marriage of communism and capitalism than any other communist society. And increase their carbon footprint and ensure AGW become a reality and further condemn their country to localised environmental degradation. The “developing” world needs a good clean out….. HooYay believes it's only the Chinese who should make the sacrifices to save the world. HooYay offers no contribution. Naaaw, you can see you’re dilemma but can’t acknowledge it, huh. Twice in one day!!

Your irrational perception of a dilemma will disappear by tomorrow morning if you sober up and wake up and find the options in your dilemma are reduced by two.

[quote]"China will use its growing relationship with Brazil to pressure Australia into running a more independent foreign policy, according to analysts and academics, as Beijing seeks to use its economic muscle for strategic influence".

This statement is totally ridiculous. Actually China has losy interest in Australian mineral resources putting huge investment particularly in infrastructure of Russian mineral resources across the border, African and Latino American mining projects.
Isn't it good for Australia to have a more independent foreign policy?

athos wrote on May 27^th, 2015 at 10:31am:

[quote]"China will use its growing relationship with Brazil to pressure Australia into running a more independent foreign policy, according to analysts and academics, as Beijing seeks to use its economic muscle for strategic influence". This statement is totally ridiculous. Actually China has losy interest in Australian mineral resources putting huge investment particularly in infrastructure of Russian mineral resources across the border, African and Latino American mining projects. Isn't it good for Australia to have a more independent foreign policy?

Gough Whitlam tried that and was overthrown by USA blackops.

Svengali wrote on May 26^th, 2015 at 4:47pm:

HooYAY its FriYAY wrote on May 26th, 2015 at 12:38pm: Svengali wrote on May 26th, 2015 at 12:31pm: HooYAY its FriYAY wrote on May 26th, 2015 at 12:12pm: Svengali wrote on May 26th, 2015 at 12:08pm: There are a still a lot of Chinese that need to get onto the first step which will take many decades before economic progress proliferates to the bottom levels of Chinese society. Meanwhile other Chinese will climb the economic pyramid. Chinese appear to be better at mastering the marriage of communism and capitalism than any other communist society. And increase their carbon footprint and ensure AGW become a reality and further condemn their country to localised environmental degradation. The “developing” world needs a good clean out….. HooYay believes it's only the Chinese who should make the sacrifices to save the world. HooYay offers no contribution. Naaaw, you can see you’re dilemma but can’t acknowledge it, huh. Twice in one day!! Your irrational perception of a dilemma will disappear by tomorrow morning if you sober up and wake up and find the options in your dilemma are reduced by two.

Still got nothing!!! that's smacking  :-[ :-[

HooYAY its FriYAY wrote on May 28^th, 2015 at 12:23pm:

Svengali wrote on May 26th, 2015 at 4:47pm: HooYAY its FriYAY wrote on May 26th, 2015 at 12:38pm: Svengali wrote on May 26th, 2015 at 12:31pm: HooYAY its FriYAY wrote on May 26th, 2015 at 12:12pm: [quote author=Svengali link=1432601760/2#2 date=1432606096]There are a still a lot of Chinese that need to get onto the first step which will take many decades before economic progress proliferates to the bottom levels of Chinese society. Meanwhile other Chinese will climb the economic pyramid. Chinese appear to be better at mastering the marriage of communism and capitalism than any other communist society. And increase their carbon footprint and ensure AGW become a reality and further condemn their country to localised environmental degradation. The “developing” world needs a good clean out….. HooYay believes it's only the Chinese who should make the sacrifices to save the world. HooYay offers no contribution. Naaaw, you can see you’re dilemma but can’t acknowledge it, huh. Twice in one day!! Your irrational perception of a dilemma will disappear by tomorrow morning if you sober up and wake up and find the options in your dilemma are reduced by two.

Still got nothing!!! that's smacking  :-[ :-[/quote]

You have been running on intellectual empty for 60+ years. Yes you can open your first can for the day.

Svengali wrote on May 28^th, 2015 at 12:49pm:

HooYAY its FriYAY wrote on May 28th, 2015 at 12:23pm: Svengali wrote on May 26th, 2015 at 4:47pm: HooYAY its FriYAY wrote on May 26th, 2015 at 12:38pm: Svengali wrote on May 26th, 2015 at 12:31pm: HooYAY its FriYAY wrote on May 26th, 2015 at 12:12pm: [quote author=Svengali link=1432601760/2#2 date=1432606096]There are a still a lot of Chinese that need to get onto the first step which will take many decades before economic progress proliferates to the bottom levels of Chinese society. Meanwhile other Chinese will climb the economic pyramid. Chinese appear to be better at mastering the marriage of communism and capitalism than any other communist society. And increase their carbon footprint and ensure AGW become a reality and further condemn their country to localised environmental degradation. The “developing” world needs a good clean out….. HooYay believes it's only the Chinese who should make the sacrifices to save the world. HooYay offers no contribution. Naaaw, you can see you’re dilemma but can’t acknowledge it, huh. Twice in one day!! Your irrational perception of a dilemma will disappear by tomorrow morning if you sober up and wake up and find the options in your dilemma are reduced by two. Still got nothing!!! that's smacking  :-[ :-[/quote] You have been running on intellectual empty for 60+ years. Yes you can open your first can for the day.

;D ;D still nothing, perhaps you need a drink Spaz?

::)

I've posted before that china is suffering the malaise of Neo-capitalism - rising wages, meaning rising costs of production, meaning rising costs of produce etc since farmers etc need to raise prices to keep up with costs of living, and eventually - very soon - the cost of industrial wages in china will equal the West - and a whole new ball game begins......

Social imbalances in China are rapidly approaching the social imbalances here.... and the Warlord Mandarin Class (sorry) the Party leadership and mates/cronies are living the high life at the moment, and are utilising the instruments of the State including its armed forces, to maintain their status quo.

I predict a crash shortly..... or a new Mao arising in the East.....

It is obvious that China might try to play off markets against one another - the cost of transporting beef from Argentina is much higher, the distance much longer... no worries - someone will take up the slack.

No need to panic just yet....

Grappler Racist Filth wrote on May 28^th, 2015 at 8:07pm:

I've posted before that china is suffering the malaise of Neo-capitalism - rising wages, meaning rising costs of production, meaning rising costs of produce etc since farmers etc need to raise prices to keep up with costs of living, and eventually - very soon - the cost of industrial wages in china will equal the West - and a whole new ball game begins...... Social imbalances in China are rapidly approaching the social imbalances here.... and the Warlord Mandarin Class (sorry) the Party leadership and mates/cronies are living the high life at the moment, and are utilising the instruments of the State including its armed forces, to maintain their status quo. I predict a crash shortly..... or a new Mao arising in the East..... It is obvious that China might try to play off markets against one another - the cost of transporting beef from Argentina is much higher, the distance much longer... no worries - someone will take up the slack. No need to panic just yet....

There is considerable shipping congestion in the shipping lanes Australia-China. An alternative route might be advantageous. The key is whether the Brazilian products can be shipped through a third country with West Coast access, and whether shipping between China and Brazil has excess backloading capacity which makes the cost very small.

Finally it depends on whether politics trumps economics given that establishment of multiple supply sources reduces the price of the goods and might lead to Chinese actually paying less after shipping costs.