Does Australia Need China??

Discussion in 'Property Market Economics' started by MTR, 22nd May, 2020.

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  1. jaydee

    jaydee Well-Known Member

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    So we allow our iron ore companies to extract as much as they want and sell it to whoever at whatever price they can get?

    In another life I worked in the oil and gas industry and was continually surprised how two neighbouring (and competing) LNG conglomerates could develop and extract from the same reservoir whilst receiving multiple billions (yes!!) in tax concessions to get the product out of the ground and to market.

    IMO whilst a lot of money was spent in development of these separate projects, billions of dollars were lost in subsidising these developments (in the form of tax concessions and write-offs) rather than developing optimal solutions that overall benefitted Australia in general.

    In short, we subsidise some of these multinational companies to rape and pillage our assets.
     
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  2. Trainee

    Trainee Well-Known Member

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    A little easier to do when the government owns the oil company.
     
  3. Waterboy

    Waterboy Well-Known Member

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    Does China Need Australia?
     
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  4. jaydee

    jaydee Well-Known Member

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    The Government owns the assets, they don't need to own the oil companies. They just need to maintain better control of the jewels.
     
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  5. MTR

    MTR Well-Known Member

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    The problem is the timing could not be worse. Hoping for a quick recovery?? But this now may not be the case
     
  6. MB18

    MB18 Well-Known Member

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    China is like a sugar daddy, we dont need them, but our material lives sure are better for it.

    My own belief is that there is growing over reliance on China and it won't be in our long term interests to continue in this way.
     
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  7. MTR

    MTR Well-Known Member

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  8. Speede

    Speede Well-Known Member

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    Aus will go back to the 1980s shortly.
     
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  9. trinity168

    trinity168 Well-Known Member

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  10. Big Lez

    Big Lez Well-Known Member

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    I have to admit, we are pretty stupid to become so reliant on one country in the first place with very little diversity and complexity in the products we export. Basically, our economy is based on digging holes in the ground, building dodgy apartments, exploiting international students and having a completely unsustainable population ponzi scheme.

    If we were to become less dependent on China and create new export opportunities, we are going to have to get rid of this “NIMBY” attitude and cut red tape to become more financially competitive on a global scale.
     
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  11. Waterboy

    Waterboy Well-Known Member

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    People don't realise China needs Australia as much as the other way around.

    Australia provides high-quality, low-cost Iron Ore and Metallurgical Coal which are the main ingredients to make Steel. Add to that the Thermal Coal used to run power plants, and high-quality food and agricultural products to feed its one billion population.

    Without these Australian raw materials, China will have to spend lots of money to produce Steel. The alternative to Australian materials are low-grade expensive ores which are uneconomical to mine and process.

    Without low-cost Steel, Chinese industrialisation is an expensive exercise.
     
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  12. Fargo

    Fargo Well-Known Member

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    We dont need China. China needs a market for it's constantly replacing crap it produces . It has got nothing anybody needs including itself . It needs our iron ore, no-body else can supply there needs. Their economy relies on building war implements and constructing stuff no-body needs, and making crap. They cant feed themselves and food they do produce is toxic.
     
  13. Fargo

    Fargo Well-Known Member

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    What garbage, Australia still has markets for its barley, a $15 a tonne premium has gone. Australia has no stocks of Barley, will be out if Barley before next harvest, 3 million tonnes will be needed to replace ran down stocks about the same that could go to China. Barley prices have been high. at parity with wheat and import because of drought, high demand and low supply China has had to pay a premium to get it. Forward prices have have dropped to 2018 pre drought levels. Farmers could have priced barley @ $300 a tonne for new crop. Low prices aways fix low prices. The Irony is that China is bitching about prices being too low in 2018 affecting their inefficient farmer, now they import subsidised American corn instead because they are scared of the USA not buying their useless crap.
     
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  14. Property Baron

    Property Baron Well-Known Member

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    Hypothetical - What would happen if we called them "like a dog" and decide to sell our Iron ore, Meat, Wine, Fish and god knows what else we sell to them to other countries?
     
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  15. Nodrog

    Nodrog Well-Known Member

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    +1
     
  16. Illusivedreams

    Illusivedreams Well-Known Member

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    100%agreed
     
  17. Omnidragon

    Omnidragon Well-Known Member

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    Lol some of the ignorant comments are hilarious.
     
  18. Waterboy

    Waterboy Well-Known Member

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    If we close a couple of mines, the price of iron ore will skyrocket, and that will be a PITA of China.
     
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  19. Kangabanga

    Kangabanga Well-Known Member

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    Dont think there's another export market for iron ore and coal that could rival China's. Food products wise probably could find other markets but at lower prices.
     
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  20. HUGH72

    HUGH72 Well-Known Member

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    That's what Neville Chamberlain said. :eek::p
     
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