A new analysis suggests Australia's trade disputes with China are not part of a global trend of shifting away from trading with the Asian giant as some believe.
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In fact, a new analysis suggests there is actually greater integration between China and the rest of the world, including with countries Australia sees as strategic friends.
"Australia's strategic friends have offered useful rhetorical support for Australia's predicament," a new report by the Australia-China Relations Institute of the University of Technology Sydney says.
"But outcomes demonstrate a parallel commitment to advancing their own commercial interests."
Despite both Washington and Beijing now imposing an average tariff of 20 per cent on each other's goods, in January-September 2021 the value of two-way trade between the US and China stood at $US603 billion ($A847 billion), up 33 per cent on the same period in 2019.
US investment in China also hit a record high of of $US124 billion in 2020, up nine per cent on 2019.
In contrast, in January-September 2021, China's imports from Australia of 12 disputed goods fell by $US12.6 billion compared with 2019.
The biggest beneficiary was Australia's security ally, the US, which increased sales of the same goods to China by $US4.6 billion.
Canada and New Zealand also increased their sales by $US1.1 billion and $US786 million, respectively.
"Expressions of solidarity with Canberra have also not extended to strategic friends significantly stepping up their purchases of Australian goods disrupted by (China) to help mitigate costs," the report says.
In January-September 2021 sales of Australian wine to China fell by $US480.5 million, compared with 2019, yet US purchases rose by just $US7.1 million.
"For Australia's wine producers, market diversification is as difficult, long and costly a process as ever," the report says.
"Nor has there been a broader re-orientation of Australia's trade patterns towards countries with which Australia has shared values, such as a commitment to democracy."
But the institute says none of these economic realities excuse or deflect attention away from Beijing's actions being the source of Australia's predicament.
"Nor do they suggest Australia should not stand up for its values," it says.
Australian Associated Press
