Posts tagged ‘commodity prices’

28/06/2013

Rudd: China Boom Over

The Diplomat: “Australia’s second-time Prime Minister Kevin Rudd has wasted no time hammering a nail in the coffin of the China boom after ending the political career of his predecessor. Making his first press statement Wednesday night after successfully challenging Julia Gillard for the Labor Party leadership, the Mandarin-speaking Rudd said Australians must diversify away from the Middle Kingdom.

“The global economy is still experiencing the slowest of recoveries. The China resources boom is over…and when China represents such a large slice of Australia’s own economy, our jobs, and the opportunities for raising our living standards, the time has come for us to adjust to the new challenges,” he said.

“New challenges in productivity. New challenges also in the diversification of our economy. New opportunities for what we do with processed foods and agriculture, in the services sector, and also in manufacturing…..Looking at our global economic circumstances therefore, we have tough decisions ahead on the future of our economy.”

China overtook Japan as Australia’s top trading partner in late 2007 due to China’s seemingly insatiable appetite for Australia’s energy and mineral resources, including iron ore, coal and gold. Two-way trade amounted to A$125 billion in 2012, with Australia becoming China’s sixth-largest source of imports.

However, Beijing’s measures to cool growth sparked the end of the resource boom, with commodity prices tumbling and Australia’s miners slashing jobs and shutting mines. While Gillard’s China visit in April 2013 sparked renewed interest in trade talks, prospects for a free trade agreement (FTA) with No. 2 trading partner Japan have appeared more likely in recent times, as previously noted in this blog.

Rudd attracted criticism during his previous stint as prime minister for bypassing Japan but visiting China in his first major trip, and ironically he was scheduled to visit China on Thursday afternoon to speak at a Beijing summit.”

via Rudd: China Boom Over | Pacific Money | The Diplomat.

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