Continuing situation between China and Australia proving detrimental for both countries


China has imposed restrictions for imports from Australia for various items. Although, this might not have had the impact that China had first wanted.

China makes up a large part of the Australian trade, therefore, the intentions behind restricting import from Australia would have been to damage the Australian economy. Although China has somewhat succeeded, with certain Australian industries suffering significantly (such as the lobster industry in Victoria), the Chinese have also experienced damage. 

For example, Australia exported a large quantity of barley to China, which Chinese manufacturers used for production. Now that there have been restrictions, manufacturers will have to resort to lower quality barley which hurts both productivity and economic growth. 

Additionally, there have been coal shortages in China, leading to an increase in power outages. Even though the Chinese government denies a link, it does seem to demonstrate damage caused to China from restricting imports from Australia. 

The damages that both countries face in the long run will become apparent – but it does appear that even though China placed restrictions with an agenda to hurt the Australian economy, the country might also experience economic strain. 


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