"Australia Concludes 'Impossible' to Separate Supply Chains from China"

Australian authorities have concluded in an internal review that it is 'impossible' to completely decouple supply chains from China, a major raw material export country, the Hong Kong South China Morning Post (SCMP) reported on the 5th.

SCMP cited multiple sources, explaining, "Australia conducted three separate internal investigations over the past eight years to determine whether a complete supply chain decoupling from China was possible, but all concluded it was 'impossible.'"

A source who requested anonymity said, "Recently, the Australian Department of Foreign Affairs and Trade and the Treasury jointly conducted two studies in 2015 and 2020, both concluding that 'there is no alternative market to China as an export market for Australian goods,'" adding, "The Southeast Asian market is a secondary market." The first Australian study was reportedly conducted under the order of then-Prime Minister Tony Abbott in 2012, following warnings from the United States about Australia's economic and trade dependence on China.

China is a major buyer of Australian iron ore, liquefied natural gas, and agricultural products. According to the Australia-China Relations Institute at the University of Technology Sydney, among Australia's top three exports?lithium, iron ore, and lobster?exports to China account for 84%, 69%, and 80% of total exports respectively. As of last year, the trade volume reached $152.9 billion (approximately 206.49 trillion KRW), which SCMP assessed as the foundation of bilateral relations and a factor making total breakdown impossible.

In 2020, when the Scott Morrison administration called for an international investigation into the origins of COVID-19, relations between the two countries seemed to deteriorate rapidly. After China responded with a series of official and unofficial trade sanctions, the concept of supply chain diversification began to gain more attention. According to sources, former Australian Treasurer Josh Frydenberg refused to release the two reports because they did not align with the Morrison government's stance toward China. SCMP explained that all three studies remain classified in Australia, and no copies have been obtained.

This content was produced with the assistance of AI translation services.