Australian economist warns against economic alliance to counter Chinese trade dispute

Source: Xinhua| 2021-09-14 11:00:45|Editor: huaxia
Video PlayerClose

SYDNEY, Sept. 14 (Xinhua) -- An economist from the Australia-China Relations Institute (ACRI) warned that it would be a mistake for Australia to push for an economic "alliance" with the United States to counter its current trade deadlock with China.

Professor James Laurenceson, director of the Sydney-based research institute, made the remarks in an article published on Monday in the face of the annual Australia-U.S. Ministerial Consultations (AUSMIN). It is reported that the trade discord between China and Australia is on the agenda of the bilateral talks.

Laurenceson wrote Australia's desire to discuss the issue during the meeting is readily understood, but there is good reason to question whether repurposing its security alliance to tackle economic issues and working ever more closely with the United States on initiatives aimed at China represents a coherent strategy for Australia to get what it wants.

He noted the United States is not always a reliable partner. Australia relies on global adherence to WTO rules to protect its trade interests while it is the United States whose actions impaired the role of WTO. The U.S. support for Australia hasn't gone beyond rhetoric is in a sense not surprising because that involves political or economic costs to the United States.

He added that the United States designated China as a "strategic competitor" but that does not automatically make China the strategic competitor of Australia.

"The more the idea of an 'economic alliance' with the U.S. on par with its security alliance is embraced, the greater the danger of Australia getting bogged down with the U.S. in a 'forever war' against its largest trading partner - in this case, spilling treasure rather than blood," he wrote. Enditem

KEY WORDS: Australia,China,Trade Dispute