‘Weariness’: Business chief offers sobering view of future with China

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Australian Industry Group CEO Innes Willox has offered a sobering view of the current trade relationship with China which has significantly improved over the past few years.

The head of Australia’s peak industry body has warned despite the improving trade situation with China, there was still “fragility” in the relationship and a “weariness” among businesses.

“Well the relationship is better than it was, let’s be clear about that, in an economic sense it has improved quite clearly from where it was two to three years ago,” he said. Australian Industry Group CEO Innes Willox has offered a sobering view of the current trade relationship with China. Picture: Sky News Australia

On the continued growth in dollar terms, even during “problematic years”, Mr Willox said it was largely commodity driven and while “good in the short term”, had long term implications.“There’s some estimates kicking around that by 2030 China could be very much reducing their reliance on us for our commodities on coal, iron ore and the like as they stockpile and they themselves diversify their markets.

Mr Willox hesitated to use the word “weariness” to describe the current economic engagement with the China market, but said there were many concerns surrounding regional security issues along with the potential re-election of Donald Trump who may impose tariffs which could cause, for a second time, a trade war.

“We are living in a very volatile world and China, as well as Australia, is looking for ways to smooth out that volatility. The language has definitely moderated and the request to shelve out differences was noticeable,” he said.“We’re all very aware of recent history, and pretty weary, as I said, of what could be around the corner. Things that are external to the direct Australia-China relationship that could impact us.

 

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