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Amid rising global trade tensions, Australia has turned down a proposal from China to unite against U.S. tariffs. This move highlights Canberra’s intent to chart its own course as Washington ramps up its economic confrontation with Beijing.
The United States, under President Donald Trump’s administration, has imposed steep tariffs—10% on Australian imports and an even harsher 125% on Chinese goods. This escalation has put pressure on multiple global economies, stirring diplomatic ripples far beyond Washington and Beijing.
Canberra Prioritises Independence in Global Power Play
China’s ambassador to Australia, Xiao Qian, pitched the idea of a joint stand against the U.S., urging global unity against what he termed “hegemonic and bullying behavior.” He added, “The international community… should firmly say no to unilateralism and protectionism.”
Despite this, Australian Prime Minister Anthony Albanese made it clear that Australia would not align itself with China’s position. He emphasised that Australia would focus on its own national interest and “speak for ourselves.”
Defence Minister Richard Marles reinforced this stance by stating, “We’re not about to make common cause with China, that’s not what’s going to happen here. I don’t think we’ll be holding China’s hand.”
He continued by acknowledging concerns over the U.S.-China tensions but clarified Australia’s approach. “We don’t want to see a trade war between America and China, to be clear, but our focus is on actually diversifying our trade,” he told Australia’s Nine News.
While Australia is displeased with the U.S. tariffs, it has chosen not to retaliate. Instead, the government is pushing for more dialogue with Washington, hoping to ease the strain through negotiation rather than confrontation.
Meanwhile, Ambassador Xiao Qian warned that Washington is “weaponising” trade disputes, potentially endangering the global economic balance. He suggested that Beijing and Canberra work together to uphold an open and fair trade system.
Looking Beyond Traditional Partners
In a strategic shift, Australia is actively scouting for new markets to reduce its dependence on both the U.S. and China. The aim is to build stronger trade links with countries such as Indonesia, India, the United Kingdom, and the UAE.
“Eighty percent of trade does not involve the United States. There are opportunities for Australia and we intend to seize them,” Albanese said, signalling a pivot toward a more globally diversified trade policy.
Trade Minister Don Farrell has already begun strengthening ties with key regional partners, including Japan, Singapore, South Korea, and India, as Australia lays the groundwork for a broader economic network.
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