No doubt the Chinese are monitoring the effects of Sanctions on Russia & reviewing its own economic vulnerabilities.
Just imagine what economic strife Aus would be in if it were to be China that was subjected to these Russian sanctions.
IMO, our economy would implode within a month !
This is why, IMO, we should have economic assurances from the USA, before we started to relay the US hostilities towards China.
So what is the solution? IMO we should be:- (a) downstream processing some of our minerals and sell products to other countries but not China (b) downstream process some of our raw ag exports supermarket shelf ready for global food markets (c) call on our western anti-China allies to help us diversify trade aay from China
For example, we export IO & Met coal to China in enormous quantities. It takes about 1.7 ton of IO & 700 kgs of Met coals to manufacture which has an export value of about $500 AUD A ton of premium steel girder is worth about $3K export value.
So one ton of export steel would replace 10 ton of IO & 4.5 ton of Met coal exports and position us to sell this to countries other than China.
Just consider if we processed 10% of our IO & Met Coals into steel we could lift our GDP by $87 billion a year or 4.8% P/A
This would take us to a biggest GDP OECD member and at the same time de-lever our economic dependance on China.
IMO, if the USA us really serious about stemming China's economic growth it should finance (not own) our quest to economically decouple from China.
So far the USA has won & Aus has lost in the US quest to stymie China's economic growth.
