How to Win a Trade War Against China

It’s the game of Achilles’ heels.

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I was much surprised to recently learn that just a few years ago, China got badly trapped in its own laid trade chessboard.

Let me briefly share this story with you all.

China and Australia are deeply economically interdependent. In this close relationship, China is the buyer and Australia the seller. This bond has grown so strong that today, Australia exports the largest share of its international trade goods to China. In fact, .

On the other hand, for China, Australia ranks as the fourth-largest import partner. The dominant share of these imports consists of raw materials, notably coal, iron ore, and lithium. Coal powers electricity for China’s vast population, iron ore builds its towering skyscrapers, and lithium fuels the batteries for its domestically produced electric vehicles.

Coincidentally, mining happens to be Australia’s most lucrative industry. Naturally, this makes a major economy like China its most critical customer. China powers its own economy by relying on Australian mining exports, while in return, Australia earns billions of dollars annually.