In order to decouple trade wise from China we need a well reasoned/well resourced economic plan so that China is prevented from crueling us economically for purely political purposes.
Facts: China is our biggest trading partner China takes most of our 3 most highly valued exports - Iron Ore, Met & Thermal Coal & LNG. Our balance of trade (recently positive) has depended on exports to China Our AUD is sensitive to China Trade (eg: the Aussie coal ban by Dalian ports a year ago saw the drop in the AUD)
So we have two options in what is becomming a East/West polarised world: (1) Go with the USA and impose economic sanctions on China which will, in effect, reverse our trade surplus with China by at least $40 billion a year. This will virtually sink BHP, RIO & FMG, IMO. Added to the Corvid recession, this could mean our economic rescue by the IMF, a further detiorisation of our economy requiring a national bail out of the big 4 banks. As happened during the GFC, IMF rescue packages come with strings attached which negatively impact national Soverignty. This happened in Greece, Spain & Ireland 2008-2012)
(2) We could devise an economic plan to industrialise, process our minerals with our coals & LNG and supply emerging economies with steel & aluminium products at a globally competitive price. This industrial development strategy could take qs from China which, 40 years ago set up a series of special economic zones dedicated to specic forms of manufacturing. I know that we should have done this in the late 80s/early 90 when we were toying with special hi tech manufacturing hubs but, IMO, its better late than never, Instead the hawk-Keating Government was up itself perusing Neo-Liberalism with Labor Characteristics!
The key here is to find a better alternative to what we are doing now and which makes us more economically independant and develop Australia industrially so that all Aussies benefit; not just a few and the enduring benefit would be hat we are not either a colony of the USA or China.
It is interesting that many posters on these threads oppose our China Trade but they dont have an alternative. That seems the warmonger position rather than a well reasoned transition to economic independance. To assume that Japan & Korea will take up the slack is unrealistic. If we go with the USA and impose economic sanctions on China the ass will fall out of our iron ore, coal & LNG prices which will mean many operations closed or put in care and maintenance, IMO.
So the bottom line is "be careful what we wish for" or we may very well get it!
