In Albo’s great grovel to China, there is a trend that nobody dares speak its name.
Despite the ALP’s weak-kneed Chinese fixation, the truth of it is that the Chinese economy is getting weaker, not stronger, with no end in sight.
Ironically, for Albo’s great Chinese kowtow, this is particularly the case when it comes to Australian trade.
The Chinese economy is barely growing. But it is changing. And those changes are away from Australian exports that supplied construction and towards higher-tech industries, of which Australia has none whatsoever.
Hence, our trade surplus with China is falling and, in my view, it will turn into a deficit in 2026/27.
The looming gluts in bulk commodities and LNG are going to pull down export revenues by another 30% yet.
Meanwhile, more importantly for the story, Chinese imports will continue to grow.
This is because we continue to pursue the world’s most stupid economic model by pumping demand via immigration instead of increasing the efficiency of supply via innovation and investment.
The model comes with Dutch disease, through which overpriced local costs offshore industry.
And that is where stupid turns catastrophic. Not even a one-hundred-year Chinese pandemic shock was enough to convince Canberra that it needs to repatriate critical supply chains.
No, we’ll just keep relying on our fundamental enemy to supply us with everything, even critical military inputs.
Everybody else worldwide got this message. Sovereignty matters, and if you make yourself vulnerable to China, it will exploit you, most plainly from the failed example of Australia!.
Be warned, the looming trade deficit is just the start.
If Labour remains in power, it will soon be a freedom deficit as well.
