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International relations

'Lucky' Australia seen weathering impact of China tensions for now

Analysts say commodities trends and security alliances work in Canberra's favor

Australia-China relations have rapidly worsened since last year, but analysts say Canberra and its economy are weathering the storm.    © Reuters

SYDNEY -- Commodity price trends, China's energy crisis and evolving Asia-Pacific defense alliances appear to be helping Australia weather its long-running confrontation with Beijing, despite significant pressure on some segments of its economy.

Nearly 18 months after Prime Minister Scott Morrison's call for an international inquiry into the origins of COVID-19 soured relations with Beijing, analysts say Australia looks to have suffered only a limited economic hit from Chinese trade sanctions and other pressure. Australia has even managed to widen its trade surplus with its biggest partner to record levels over the past year, while finding new markets for many of its affected sectors.

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