How US-China conflict over Taiwan would impact Australia
SYDNEY - The economic consequences for Australia of a US-China conflict over Taiwan would be severe, according to a study released by the Australian Strategy Policy Institute (ASPI).
Report author, David Uren, analyses the short-term shock to Australia's economy from the potential conflict and concludes that there would be widespread loss of employment, along with consumer and business goods shortages that would likely necessitate rationing.
The objective of the report is to contribute to an understanding of the nature of Australia's economic relationship with China, and the likely paths of adjustment should that trade be severed.
It also explores the options available to the Australian Government to ameliorate the worst of the effects.
The report recommends that the federal government make the diversification of Australia's trade a priority.
It says Australia has accumulated an impressive array of bilateral and regional trade agreements over the past eight years, but, with the exception of the agreement with China, there's been little follow-up.
Trade with nearly all other trading partners has languished, it says.