[Disclaimer: The content of this article is written with authoritative sources and personal opinions]
Text | Overseas TestimonialTalk
Edit | Overseas TestimonialTalk
Against the backdrop of an increasingly complex global trade landscape, the fortunes of France and Australia seem to be moving in very different directions. One is facing a heavy blow, and the other is ushering in the dawn of a long time.
Loading...
After four years of trade between China and Australia, a major consensus has finally been reached in recent days, Australia lobster is about to return to the Chinese market. At the same time, France's brandy industry has been hit hard by Sino-European trade frictions.
The game behind this, the strategic choices between countries, and the winners and losers in this contest have put the situation in the spotlight of the world.
In recent years, France has been an important exporter of wine and brandy to the Chinese market, while Australia has a huge advantage in high-end foods such as wine and lobster. However, Australia's relationship with China deteriorated sharply in 2020, resulting in the almost total exclusion of commodities such as lobster from the Chinese market.
Now, with the gradual warming of Sino-Australian relations, Australia has finally ushered in the opportunity to resume trade cooperation with China, which is undoubtedly an important rescue for the Australia economy. At the same time, France is facing difficulties in brandy exports due to Sino-European trade frictions, and the entire France alcohol industry is wailing.
France has long been a global leader in the production and export of brandy, especially cognac, which has always enjoyed a good reputation on the international market. However, France's huge advantage is rapidly disintegrating because of the trade friction between China and Europe.
In October, the European Union decided to impose tariffs of up to 45.3% on Chinese electric vehicles. This move sparked strong dissatisfaction in China, which immediately announced the imposition of temporary anti-dumping measures on EU brandy. This is not just a policy announcement, it represents a direct counterattack by China against France. France, as an important force within the EU pushing for tariffs on China, has become the primary victim in this trade war.
According to France's National Administration for the Cognac Industry, brandy sales in the Chinese market will fall by about a fifth. A loss of this magnitude would be a heavy blow to an export-dependent industry. To add insult to injury, many fear that this may be just the beginning. If China further steps up its countermeasures, France brandy may even withdraw from the Chinese market altogether.
The importance of the Chinese market for France brandy is self-evident, as one of the world's largest consumers of brandy, the Chinese market contributes a significant share of France's brandy exports.
The loss of this market means that France brandy exporters not only face a huge loss of income, but also need to find other markets to fill this gap. Moreover, the consumer group of brandy, a high-end liquor, is relatively fixed, and it is difficult to find an alternative market in a short period of time.
In stark contrast to France, Australia has ushered in an important trade breakthrough in the context of warming Sino-Australian relations. On October 10, Australia Prime Minister Anthony Albanese announced that China and Australia had reached an agreement on the resumption of lobster trade, which means that Australia lobsters will return to the Chinese market by the end of this year.
This is undoubtedly great news for the Australia lobster industry, which was the largest importer of Australia lobster in China before the deterioration of relations between China and Australia in 2020, when Australia exported as much as $700 million.
However, with China's trade restrictions on Australia, the lobster industry in Australia has suffered a heavy blow. At one point, the price of lobster plummeted, many fishermen had to leave the industry, and the entire industry chain was in trouble.
The importance of the Chinese market to Australia lobster lies not only in its huge consumption, but also in the strong demand of Chinese consumers for high-quality lobster. Every year during the Chinese New Year, Australia lobsters are a sought-after item in the Chinese market. The reopening of this market means that the Australia lobster industry will return to growth and fishermen can expect to benefit from this lucrative market again.
Albanese couldn't hide his excitement when he made the announcement. He said the resumption of lobster trade is not only a positive signal for China-Australia relations, but also a great encouragement for Australia's fishing industry and related practitioners. This will undoubtedly coincide with the peak sales season of the Chinese New Year, a moment that Australia fishermen have long been looking forward to.
Since the Australia Labor government came to power in 2022, China and Australia have gradually repaired the rift in their relationship caused by the China policy of the previous Morrison government. China has successively lifted import restrictions on Australia's beef, wine and other products, and the lobster ban has become the last major obstacle to China-Australia trade relations.
The resumption of lobster trade is only the beginning of the warming of China-Australia relations, and China has repeatedly mentioned the keyword "mutual benefit and win-win" in the process of restarting trade cooperation with Australia. This is not only reflected in trade exchanges, but also in the potential for cooperation between the two countries in green development, scientific and technological innovation and other fields.
The France and the European Union have become more vacillating in their China policy, and under United States pressure, the EU has opted for tough tariffs against China, even if it hurts its own economic interests. France, as the main promoter within the EU, will have to suffer the consequences of its policies. In the future global trade landscape, the relationship between France and China will be more complex, while the cooperation between China and Australia may be deeper.
The improvement in trade relations between China and Australia is in stark contrast to the EU's hardline China policy, which is not only a trade game between the two countries, but also a microcosm of the strategic choices of different countries in the global economic landscape. Australia has opted for a pragmatic foreign policy and has reaped huge economic rewards by repairing its relationship with China.
France have chosen to side with United States on the issue of EV tariffs, a strategy that has United States support in the short term, but in the long run, it could hurt France interests in the Chinese market.
Whether it is the cooperation between China and Australia, or the friction between China and France, we have seen the challenges and choices faced by countries in pursuing their own interests in the era of globalization. In this complex game, it remains to be seen who will gain a foothold in the global economic wave.
What do you think about this? Feel free to leave a message in the comment area!
Resources
"Australia's Prime Minister Says China Agrees to Resume Australian Lobster Imports: Can Catch the Spring Festival" - Observer.com2024-10-10 17:27
(Due to the rules of the platform, you will only be considered a fan if you have more interaction with me.) If you like my articles, you can click "Follow" and receive the article push as soon as you become a fan. ）