This power-posturing on the international scene by the United States is not only a message to China in the context of the South China Sea and the ongoing uneasiness between both these two countries, but also it is a signal by the United States to stand with Australia, whose relations with China have been somewhat unpleasant for a year and a half now. In March 2020, when the coronavirus began to unleash unprecedented, incomprehensible and unimaginable havoc on business, trade, industries, economic activity and nearly all forms of commerce on the entire planet, Australia was no exception.
China should not be underestimated for a second when it comes to its pride, independence, national honour and sovereignty. From the time of the late Chinese leader Deng Xiaoping, who was the architect of the industrial and commercial reforms in China in the 1980s to date, China has become the second biggest economy in the world, surpassing Japan and Germany. Such a phenomenal economic and industrial achievement, and complementing it with maintaining a highly modern and sophisticated armed forces is definitely the product of miraculous determination and solid focus.
In the year 2019, the total Australian exports to China were worth US$ 102,996 million. China’s displeasure towards Australia’s demand in April 2020 led it to put tariffs, or in some cases, outright banning some Australian products. Australian coal, wine, barley, beef and cotton exports to China suffered. This was an enormous setback for the Australian economy. Australia also came under diplomatic pressure, and thus moved to utilise its connections at the global level. This alliance between the US, UK and Australia known as AUKUS, is spearheaded by the United States.
For some time now, the United States has been observing China’s colossal economic, financial, commercial and industrial growth with trepidation. But credit goes to the Chinese workforce, businesses and entrepreneurs who have shown exceptional hard work, continued improvisation and sharp business skills. Here, one must also recognise the business, trade and investment friendly policies of the Chinese government over the last three decades. These policies boosted the confidence and morale of businesses, private companies and foreign investors, enabling them to carry on their commercial activities in a secure business environment.
AUKUS has sent shockwaves across the world. In 2016, Australia signed a deal allowing France to build twelve conventional submarines. This deal was worth US$ 37 billion. After AUKUS, Australia announced it was not going ahead with that deal.
