The analysis of the economic relationship between China and Australia
Wenwei Huang
Schar School of Policy and Government, George Mason University, VA, USA.
https://orcid.org/0009-0000-0366-8338
DOI: https://doi.org/10.20448/economy.v12i2.7774
Keywords: Australia-China economic relations, Diversification strategies, Economic interdependence, Investment flows, Natural resources exports, Risk mitigation, Trade partnership.
Abstract
Australia's economy has been significantly influenced by the economic relationship it shares with China for the last twenty years. China’s rapid expansion and appetite for natural resources have powered Australia through an export-led boom, propelling it into uncharted territory of booming wealth. But in reality, relations have experienced major bobs and weaves under recent Australian governments, with trade wars and diplomatic parries. This article looks at the complex reality of the Australia-China relationship, with China being Australia's biggest trading partner and its impacts reaching into sectors such as mining, agriculture, and services. It examines trade flows, investment trends, and strategic collaborations, highlighting areas of mutual gain, ranging from market access to tech cooperation and risks such as supply chain exposure and geopolitical volatility. Drawing on quantitative trade data, policy reviews, and economic forecasts, the analysis underscores China's indispensable influence on Australia's GDP, employment, and fiscal stability. Ultimately, the study advocates for pragmatic diplomacy to mitigate risks while maximizing benefits, offering policymakers a roadmap for sustainable economic interdependence in an era of global flux.