Posted on Leave a comment

The impact of U.S.-China trade war on Australia

As the trade war between China and the United States continues to escalate, which country can benefit from it has been widely discussed. As a developed country, Australia can’t fill the trade gap between China and America, because most of the manufactured goods are the main target of trade war however Australia did not export those goods. Developing countries like Vietnam will benefit because they can export manufactured goods to the U.S. instead of China.

In the short term, it is natural resources, such as liquefied natural gas(LNG), that Australia stands to gain from the trade war. Australia replaces the United States to export LNG to China at a lower price. But in the long run, a trade war would lead to recession in both countries’ economic environment, resulting in less opportunity for those other countries who fill the gap like less demand for Australia LNG. Therefore, U.S.-China trade war will not have a huge impact on Australia.

Leave a Reply

Your email address will not be published. Required fields are marked *