Solution:
(a) be independent to minimise economic risk but heighten security risk
or
(b) downstream process the $ value of our current raw materials export to China
. and sell finished/semi-finished products to our FTA partners other than China/HK
.
Here's a list of our FTA partners and even Blind Freddy can see that the
obvious products to produce (cad-cam & minimum Aus labour) are finished
and semi-finished aluminium and steel automotive components.
Japan, Korea, Thailand & the USA are all big auto manufacturing countries
Other semi-finished components could come later.
The input raw materials for a ton of steel (which we have here) is about $600 while
steel semi-finished auto panels are worth at least 5 times that!
In other words to achieve the same $s in export revenue we have to export
20% of the raw materials we now export. This is not rocket science when
3rd world countries can do it like Thailand!
.
