The Biden-Xi virtual summit and supply chain tensions

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Australia-China relations have been marked by tension and while the two economies are increasingly intertwined, much divides them.

At the centre of current trade tensions is the three-way China-US-Taiwan joust which was full flight during President Joe Biden’s virtual meeting with China leader Xi Jinping on Tuesday.

China is Australia’s largest two-way trading partner in goods and services, totalling $245 billion in 2020 (Department of Foreign Affairs and Trade)

China’s increasing assertiveness in the Pacific region continues to raise concerns about repercussions for supply chains in Australia.

Former Australian Prime Minister Tony Abbott earlier this month weighed in, urging Australian businesses to reduce their reliance on China and seek alternate sources for manufactured goods.

Compared to the UK, New Zealand, the US and Canada, Australia is strategically dependent on China for the largest number of imports.

Australia is strategically dependent on China for 595 categories of goods, 167 of which have applications in critical national infrastructure. (Breaking the China Supply Chain.)

The Biden administration has called managing America’s relationship with Beijing “the biggest geopolitical test of the 21st century,” the New York Times reports.

No relationship is shaping the planet more. What does it all mean mean for trade, tech, Taiwan – and Australia?

Read more: https://www.nytimes.com/2021/11/15/world/asia/us-china-tensions-explained.html

 

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