How Australia resisted PRC economic coercion: lessons for others

Support us It can be argued that Australia weathered the economic coercion storm despite massive tariffs from the PRC because of its rich iron ore export industry. China invested in smaller iron-ore suppliers in Western Australia. Photo: AAP The People’s Republic of China has used its statecraft to weaponize its trade with other countries on several occasions in recent years. Such behavior usually arises when the PRC interprets another country’s actions as hostile to its political interests and resorts to nonofficial sanctions, tariffs, regulations, and consumer boycotts that damage a host nation’s economy. These actions don’t follow market sentiments and can be revoked without a change in any underlying economic concerns the PRC initially used to justify its imposition. Many targeted countries use terms such as economic coercion to refer to trade decisions intended to alter a nation’s policies, behaviors or decisions. Among the many advanced economies experiencing trade deficits with the PRC, Australia is a unique case. Australia possesses abundant natural resources, from iron ore to coking coal to barley and fisheries. Many of these products became major trading commodities between Australia and the PRC.

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