IN RESPONSE TO this article, and in reference to the March AFR Business Summit with a Keynote Speaker being a leading economist, Keyu Jin, who alleges that Australia will lose out if we do not follow the likes of World-beaters like the Balkans, Latin America and Africa who can now rely on the systematic flow of Chinese investment … at a price … but not that China wants to get hold of what “we have” … cough … cough … and all of it!
The WORLD is a big place, and no doubt others too would like our commodities! And it would seem there are many other Nations that could provide us with cheap household wares that rapidly end up in landfill, or we could manufacture our well-made goods again … heaven forbid!
What we are seeing is the Chinese are buying us out of house and home!
And as a CAAN Commentator suggested PERHAPS we need instil fear in our commodities because the Chinese despite their love of money are even more superstitious so to counter their agenda we need instil bad “Feng Shui” practice in our housing designs blessed with the devil spirits.
Then put the word out that our baby formula has been contaminated, and elephant tusks and rhino horns have evil voodoo, or we haven’t got a hope in Hades of stopping them from their buy-up of our Real Estate and everything else!
How embarrassing this must be for all the generations of immigrants before them? How they must be cringing at the activities of their former homeland leaders from the Communist Party and the plans Xi Jinping has lined up for us and indeed the World!
Political hostility towards China will backfire for Australia: Keyu Jin
By Michael Smith
30 Jan 2019
Shanghai | Australia will lose out if political sentiment is hostile towards China given other countries in Europe, Africa and other parts of their world are opening their door to the world’s second’s largest economy, leading economist Keyu Jin says.
Professor Jin, a London School of Economics professor and a keynote speaker at The Australian Financial Review Business Summit in March, said China remained interested in buying Australia’s exports and investing in the country but a hostile attitude towards its economic growth could backfire.
“China has vast interest in continuing its collaboration with Australia in terms of importing resources and also investing. But the political sentiment is not necessarily conducive for the collaboration … especially if Australia takes on a more hostile view towards China,” she said.
“I think that would be very sad given there are so many synergies between the two countries. A misunderstanding and misinterpretation of China’s – let’s say – Western-perceived ambitions would hurt the relationship and that would be unfortunate.”
“There are many other countries that are strengthening their ties with China, in Europe, the Balkans, Latin America and Africa, because they can rely on the systematic inflow of investment and support of various kinds. and that is what China is willing to do.”
Professor Jin’s comments came as Canberra faced more diplomatic uncertainty with China following the detention of Australian writer Yang Hengjun and Canberra’s support for a US-led ban against Chinese telecoms giant Huawei.
Defence Minister Christopher Pyne this week signalled a tougher stance against China’s aggression in the South China Sea while also calling for greater political and economic engagement with Australia’s latest trading partner.
“It would be unfortunate to let politics get in the way of development,” she said in an interview that took place before his speech.
China’s relationship with the United States and its traditional western allies is in the spotlight following the arrest of senior Huawei executive in Canada and her pending extradition to the US.
‘Totalitarianism 2.0’: Australians would be ‘mad’ to choose China over US, warns Niall Ferguson
By Jacob Greber
London-based Professor Jin, the Harvard-educated daughter of the China-led Asian Infrastructure Investment Bank (AIIB) president Jin Liqun, is a prominent economist and has often been characterised as a bridge between China and the west.
Huawei ‘will do just fine’
Speaking by telephone from Davos where she told audiences that fears about China’s slowing economy had been blown out of proportion, Professor Jin downplayed the backlash against Huawei, which she said had the most advanced 5G technology in the world.
“Huawei is going to be an ongoing issue, there is no doubt about that. I think Huawei feels it has been unfairly treated but in the end countries will make their own choices about whether they want to adapt the best technology that it is years ahead or not,” she said. The US filed a series of fraud charges against the company this week.
“In the end it is individual countries that will prioritise different things. Huawei still has a big domestic market in China, their technology is unparalleled when it comes to 5G. It will do just fine.”
London-based Professor Jin is the Harvard-educated daughter of the China-led Asian Infrastructure Investment Bank president Jin Liqun (pictured). Jason Alden
The case further inflamed US-China tensions and followed confirmation by the White House on Monday that its top trade negotiators will hold two days of talks with a Chinese delegation led by Vice Premier Liu He on Wednesday and Thursday.
Professor Jin said she was optimistic the US and China, which has signalled it is willing to make concessions, could negotiate a truce in the trade war which threatens global economic stability and would harm both countries.
“There are growing hopes there will be a deal done because both sides clearly want it,” she said.
“China needs to bide some time, strengthen its economy and wants to prevent any subversive elements from taking place. You will always get some tit-for-tat back and forth, but I think we are basically safer than getting into a real conflict.”
While upbeat on China’s future economic prospects, Professor Jin said the world was heading for a financial recession triggered by US rate increases, the vulnerability of emerging markets and political issues such as Brexit.
“None of that is looking all that good so I think there is a quite a big probability, or at least a knowable possibility, of a financial recession coming down the line given we are ten years due for a recession,” she said.
It would be unfortunate to let politics get in the way of development. Keyu Jin, London School of Economics
“The question really is how many people are really prepared for the oncoming recession in terms of protecting their financial situation and being prepared for a Fed hike.”
She said China’s biggest challenge was reforming its financial system to ensure resources were redirected to the companies that needed them. China last week posted its lowest quarterly growth rate since the global financial crisis.
Room for improvement
China’s gross domestic product rose 6.4 per cent in the fourth quarter, in line with economists’ forecasts, while annual growth came in at 6.6 per cent, which was the lowest in 28 years.
President Xi Jinping urged government officials to guard against unexpected financial risk.
“I don’t think it is right to say that China’s growth has permanently slowed but let’s get prepared for that. I think China needs to sort out of some of its problems, mainly the financial system distortions that are preventing resources from being directed to more productive firms and firms that really need them,” she said.
“These contradictions and distortions can be improved over the next three years and you can well see that enhanced dynamism in the private sector whether it is through entrepreneurship, innovation or increasing services, urbanisation. All of that can be unleashed better with a better financial system.”
The Australian Financial Review Business Summit, presented by BHP, is on March 5-6, 2019 in Sydney. Find out more at afrsummit.com