We are backing the US-CIA objective of debunking the CCP, splitting up China into weak states (like the USSR-Russia) so that the US global economic & military hegemony is maintained.
Given that the Chinese Government is the CCP, then China's reaction to our Pro-American foreign policy is understandable if not acceptable, IMO.
The thectonic shift happened in US foreign policy following Wall St's GFC when China recovered more quickly displacing Japan as the Global # 2 economy. Up until then the US-CIA expected that the growing Chinese Middle class would depose the CCP internally and morph the economy into a US styled capitalist system where US corporations & US capital markets could dominate.
Then in comes Xi with Made in China 2025 ( internal)& the BRI (external) economic strategies with his role assured for his lifetime, then the US penny dropped and the previous China policy was binned and the new agressive 'Sink China" policy was devised on similar grounds as the Regan anti-USSR strategy.
While the Regan policy worked, the big question is will it work on China and that's the predicament we find ourselves in at present: -economically dependant on China and backing the US-CIA to bankrupt China; in the short term a loose/loose predicament.
Current China trade curtailments on barley, beef, wine & fish with the prospective loss of Chinese students and tourists will likely deliver $50 billion hit to our trade balance with LNG & Coal to follow.
Apart from the normal domestic economic hit to our economy with near historic unemployment, this trade hit will likely lead to a devaluation of the AUD and a downgrade of our soverign AAA rating.
Being economically dependant on China, we should have taken the age old advice "dont get mad, get even" and IMO that should happened at a time when we're economically stable with an economic Plan B.
Instead we shot from the hip, first economically missing China and, instead, shooting ourselves in the foot at a time when we were loaded with soverign debt and crippled domestically by Covid.
