It was bad news to hear that the Chinese Ambassador threatened trade retaliation. Australian wine and beef were mentioned which are generally considered luxury goods. Why didn't he mention iron ore or natural gas? If China stops importing those from us its economy would grind to a halt. It would definitely get hurt more than us. Milk/formula on the other hand are considered necessity and essentials. Total trade volume is not as massive as minerals and gas, however, it has a significant impact on the well being of its citizens. Beef maybe a necessity for Aussies but definitely not Chinese.
Similar thing happened before when Kevin Rudd was behind the wheel. He once openly stated that he would encourage and support an US military invasion into China. It was such as stupid comment which led to Chinese authorities banning all seafood/Lobster imports which absolutely tanked the lobster price a lot worse than what we see now. From memory wholesale lobster price after Kevin's silly comment went as low as $7/kg. If you go to an affordable restaurant in inner-western Sydney you can get a kilo of lobster around $20-30 freshly slaughtered and hotly served to your table. China would have to buy minerals and gas from us even if we initiated the invade militarily which is another stupid proposition to make but even the stupidest thing does happen it would be us terminating exports to China not the other way round.
So, A2 is safe even the tension does get escalated. Politically, I think captain Scomo is rather practical. It's reasonable and politically correct to demand for an independent inquiry (maybe nudged by our big brother America). However, Australian interest always prevails. And plus, A2 is an NZ company after all. All the money making formula are manufactured in NZ which in my opinion followes China more than the US (the elimination strategy of the virus, you get it). And plus, the Chinese government is the biggest shareholder of Synlait...
It's ok to be scared but it's cool to know the truth.
It was bad news to hear that the Chinese Ambassador threatened...
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