Analysis of Australia-China Relationship

Question: Describe about the Analysis of Australia-China Relationship. Answer: The major rationale of this paper is to scrutinize the financial impact of China on Australia, especially in provisions of business, security and venture. Therefore, a detailed study would be made on examining whether the increase of China creates a severe menace to Australia, as a domain of intercontinental deal, opposition in the third nation marketplaces along with some other aspects. Not only that, this paper as well would try to investigate that whether the foreign direct investment in China is ensuing in a diversion of Foreign Direct Investment away from the section or not. At that time, a general question would come to the mind that whether the Foreign Direct Investment in China complements one another when it comes to the intercontinental partition of labor or not. Apart from that, it can be seen that the growing position of China as a worldwide trader and universal shareholder supplies an occasion for south eastern nations in order to incorporate with the Chinese financial s ystem (Broadhurst and Wang 2014, pp. 160). Xin (2012, pp. 620) has stated that the wide and vast domestic Chinese market provides wide occasions for speculation, particularly throughout associations with their particular cultural Chinese business in the area. It is necessary to mention that the relationship between China and Australia is most of the times referred to as Sino-Australian relationships, refers to the relationships between the Commonwealth of China and Australia. Headley and Reitzig (2012, pp. 80) have opined in his research paper that the appearance of China as a financial source of power has been significantly reasoning a blend in the global political as well as monetary ground, since the early years of the present century. It has been seen that a number of nations articulate immense terror of this present tendency, while the other welcome it with a large amount of approbation. Pan (2012, pp. 125) has stated that those countries who are afraid of the gradual increase of China has expressed the anxiety that contemptible labor expenditure in China would inevitably wipe out their businesses and decrease their marketplace allocations in the global market place. On the other hand, those who have welcomed the rise of China has emphasized the sheer size of domestic market of China as offering plenty openings for them to develop and its possible responsibilities and roles as another driving facror of financial system expansion in the areas after Ja pan (Burgos Cceres and Ear 2012, pp. 65). Statistics say that since the beginning of China in the year 1978, it has significantly achieved a spectacular as well as unprecedented financial expansion. On an average, an expansion of 9.7% in the actual Gross Domestic Product was calculated in the time span of 1979 to 2005. Not only that, the per capital income as well expanded largely from US$205 in the year 1980 to US$1100 in the year 2005. Therefore, this large expansion has undoubtedly left a threat to other parts of the globe and Australia is no doubt one among all. This statistics say that China now has fetched the fourth position as the biggest financial system in the globe by restoring the United Kingdom. Not only that, it is necessary to mention here that if Gross Domestic Product is calculated depended on the Purchasing Power Parity or PPP, then also China positions second just after the United States (Breslin 2013, pp. 620). Reports say that the South East Asian countries are gradually turning to Australia in order to look for strong and quicker resistance ties in the middle of increasing apprehensions over military build-up of China in the flashpoint waters of the South China Sea. It can be seen that Malaysias defense minister met Australian defense minister in order to discuss the placement of China that Malaysia is considering a tougher stand against Beijing, which is its largest trading partner. On the other hand to this situation, it can be seen that the Chinese government has strictly warned Australian Protectionism, as this could harm the business knots and at the same time has threaten the further investment in between these two nations in the gradual wake of the federal governments preliminary decision for blocking the sale of Ausgrid to the purchasers from China and Hong Kong. The Chinese Trade minister argued that this type of decision is protectionist and at the same time it largely leaves im pact on willingness of the Chinese corporations to invest in Australia. Along with that, the minister opined that China anticipates and hopes that Australia would create fairer as well as more transparent surroundings for any kind of Chinese investment (Sutter 2012, pp. 148). Nick Bisley (2012, pp. 241) has stated that a free trade agreement or FTA is an agreement that successfully removes the trade obstructions between different countries of the globe. Like many other countries, China and Australia both have Free Trade Agreement, though it is believed that this agreement is controversial at some points. Tony Abbott said that through the FTA, Australia has been successful to achieve some of their targets, like more than 300,000 people have got jobs and this is considered as one of the major achievements of 28th Prime Minster of Australia. The Defense White Paper of May, 2013, is the latest in a long series of documents for addressing the dilemmas of Australian security. However, there exists threat from China through the water ways due to several previous experiments. It can be stated that the Chinese bombers are competent to hit Australia from innovative artificial islands in the South China Sea, as a division of a main armed modernization that also has encouraged calls for Australia for developing a ballistic projectile guard. This fear has enlarged after Chinese air force declared that China is developing a long-range bomber that would enhance its potentiality to hit far from home. At this incident, previous national safety consultant stated that quickly enhancing the ballistic weaponry of China has strengthened the case of Australia to get much serious apprehensions regarding projectile resistance (Joseph et al. 2013, pp. 168). It can be stated that China is one of the severe threats that Australia faces, as the recent reports have found that Australia has been questioned with a strangely blunted caution from China. China has advised Australia to stay away of the South China Sea or risk damage to two-pronged relationships. The responsible official opined that Australia must carefully talk and cautiously behave. Not only that, Australia must not attempt to do something that might damage the regional peace, stability, relationships as well as security between China and Australia (Rmy, Davison and Shamsul Khan 2015, pp. 218). From the news, kit can be found that the great risk towards the future security of Australia is a combination of Chinas frightening financial expansion along with the probable extraction from the area of a destabilized United States. An important conversation document from the administration financed Australian planned policy institute has said that this situation would make Australia more susceptible towards overseas hostility than at any time since 1942. However, it is necessary enough to mention that this research paper has not directly name China as a possible aggressor, but has drawn a perturbing image of the communalist nations astonishing enlargement and its readiness to utilize mounting military might to attain its arms (Yi Wang 2012, pp. 281). Most importantly, it has mentioned that the recurrence of China as an immense power would be most overseas strategy confront for Australia throughout the 21st century. It had clearly mentioned that Canberra would have to cautiously equilibrium the increasing financial association of Australia with China along with its traditional alliance with the U.S. the major threat to this complementary act would be if the fiscal issues of America forced it to slash defense spending as well as withdraw from the East Asian region. In the year 2012, the Chinese defense spending grew to an estimated $US166.2 billion compared to $US22.2 billion in 2000 and this spending amount is second to the US at $660 billion (Keating 2011, pp. 159). Jones (2008) has stated that relationship with China is one of the most significant features of overseas strategy of China. As one of the powerful promising immense power in the region with whom Australia is gradually increasing a main financial association, high-quality international relationships with China would turn out to be an increasingly prominent characteristic of Australias international interests and relationships. However, upholding a good relationship with China is at the same time one of the difficult challenges for the policy constructors of Australia. The recurring friction in Australia-China Relationship that marked much of 1996 was a sign of the sensitive character of dealing with China and a good indicator of the wide range of issues that can significantly arise in managing the relationship. Jian Zhang (2015, pp. 214) has stated that of decisive significance in this association is understanding the place of China in the whole earth and the role of Australia in a wo rldwide financial system formed by China. Reports published in the last year have stated that two way treaty of Australia with China pressed past $100 billion for the first time ever. The responsible Australian-Chinese Business committee has demonstrated that the deal with China produced the corresponding of $10,000 per Australian domestic unit in the last one year unaided. Therefore, this statistics say that this by measure is undoubtedly a significant international business relationship. At the same time, it can be found that Australias gregarious diplomat to China whispered that no country ever has profited more from the rise of China than Australia and no other country needs to observe financial expansion of China as well as sustainability than Australia. At the same time, it is necessary enough to mention that this is not true all the time and there exist several controversies on this part equally (Jian Zhang 2007, pp. 154). On the other hand to threat, it is required to shed light on the positive sides of this Australian-Chinese relationship. It can be stated that the Australian and Chinese relationships are strongly characterized by strong trade relationships. It can be stated that China is Australias principal business associate, while Australia is one of the most important sources of resources for China. Several trends in the present day show that Australian exports are at present gradually expanding well beyond the resource division. It is regardless to mention that politically the association has had its own ups and downs. In the year 2013, China and Australia both decided to set up a prime-ministerial level conversation between these two major nations that makes Australia one of only a handful of nations to have such a political conversation (Jian Zhang 2012, pp. 224). Along with that, the China-Australia Free Trade came into existence on 20th December, 2015 and this conformity lays a significant groundwork for the next segment of Australias financial association with China. This particular agreement unlocks significance occasions and hopes for Australia in China that is Australias major export marketplace for both the products and services. This has accounted for almost a third of entire amount of exports as well as a mounting resource of overseas speculation. For both these countries, economic diplomacy is at the core of international engagement of government and that is why both of them are bringing together the actions in trade, expansion, investment as well as business. On 17th November, 2014, Prime Minister Tony Abbott and Chinese President Xi Jinping declared the finale of consultations for the China-Australia open deal. Both the officials believe that this agreement would undoubtedly enhance the expanding trade as well as investment relatio nships between the highly complementary economic systems (Hugh White 2010. Pp. 138). China as a marketplace for the Australian commodities Guoyou Song and Wen Jin Yuan (2012, pp. 125) have stated that as the drivers of growth and expansion of China has changed from urbanization and principle manufactured goods towards domestic consumption and more complex services and goods, the growth in demand for the resources of Australia would moderate. China as a marketplace for more multifaceted services and goods Several marketplace researchers have found that the Chinese market for more multifaceted goods and services would enlarge in two traditions. The first one is the gradual rise of the employee wages as well as the demand of the consumer would augment insist for more stylish contrived goods, for example, Australia has some positions of brilliance like in the medicinal field and for services, it is sightseeing, where china is by now a significant bazaar (Baogang 2012, pp. 201). China as a strong competitor It can be stated that the expansion of mechanized unit in Asia has been one of the main reasons for failure of Australia to struggle in several regions of manufacturing. As China goes gradually up to the value chain, more number of manufacturing units would be subjected to this rivalry. This might be ameliorated by a sharp move in the focus of the Chinese financial system away from exporting towards household expenditure (Dupont 2011, pp. 209). China as an investor From the reports and research work, it can be seen that Australia relied largely on the foreign investment. In this case, it can be seen that China lines only ninth as a shareholder in Australia with 33% share of total straight speculation. It has been observed that investment has grown rapidly in the last few years; however, Chinas overseas speculation is probable to fall as its investments speed falls (Baogang 2012, pp. 148). China as a destination for the investment While Chinese investments would almost certainly stay high enough to finance their household expansion, there would be enough room for Australian corporations to invest in China. This would be a useful way for the business to learn regarding the Chinese tastes and preferences along with the business culture. On the other hand, it can be seen that the Chinese analysts are gradually paying closer attention not only to Australia-US relationships, but also to aspirations of Australia and role as a proactive and creative middle power in the regional and global affairs. These areas generally range from nuclear arms control and disarmament, humanitarian interventions and trade negotiations to maritime territorial disputes (Broadhurst and Wang 2014, pp. 127). The alteration from the possessions boom might be, as many economists have argued costly and difficult, however, there are some occasions and chances for Australia in the gradually mounting Chinese marketplace. In the few recent years, Australia has engaged in several security initiatives or the arrangements with US airlines and partners in the region, especially with Japan and India (Broadhurst and Wang 2014, pp. 248). However, it is necessary to mention that the Australian government requires being more open regarding the cyber threat from China. The Four concern program in Australia has revealed that China, as well as suspected, is seen by the Australian government as a repeat and serious attacker on the nations security in cyber space. This particular story is sensational enough for only one reason that the government has been keeping the public in dark over the seriousness of cyber threat in general and specifically on Chinas place in that threat landscape. Therefore, it can be stated that it is of large conversation that whether China is a threat or opportunity to Australia or not. It is one of the well known facts that the Australia-China two-pronged relationship is depended on strong financial and traffic complementarities, a widespread program of sophisticated visits as well as across-the-board collaboration. 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