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Some commentators have suggested that Australia is ignoring Japan due to the rise of China as Australia’s number one trading partner and the growing importance that is attached to this relationship.
Some commentators have suggested that Australia has deliberately been repulsing their trade with Japan due to their rise in trade with China and have prioritized them as their top global trading partner. China is now Australia’s most important trading partner. In 2009, China’s contribution with Australian exports was three times more than its world import share. China’s competitiveness in manufacturing imported good provides low-costs for Australia. Global trading is the exchange of tangible and intangible products between countries. These products include food, clothes (materials), alcohol, jewelry, tobacco and cars. Two texts which relate with trade between Australia, Japan and China and which will be mentioned below are “Cry havoc? Public opinion and recent Australia-Japan relations” and “Going Global: A New Australia- Japan Agenda for Multilateral Cooperation". There are many reasons as to why Australia’s relationship is increasing more and more with China as opposed to Japan. Reasons include the low unemployment rate in China, globalization and China and Japans currencies compared to the Australian dollar. According to statistics Japans population is estimated to be 127 million people where as Chinas population is an outstanding 1.3 billion people. These figures are a clear indication of why it is more beneficial for Australia to have China as its main trading partner as opposed to Japan, the unemployment rates are higher in Japan and the economy is not as powerful as that of China. Unemployment rates have a major impact on Australia’s growing relationship with China. Due to China having a high population, it is more convenient for Australia to have a trade relationship. China holds one of the world’s lowest unemployment rates at 4.1%. China had approximately 109 million manufacturing employees in 2002 (Banister, 2005). Due to Chinas high employment rate and population, products are made faster and cheaper for Australia. According to Flannery, 2010, China holds the “world’s fastest growing economy”; this gives Australia yet another “plus” to trading with China as opposed to Japan. In view of that Scelzo and Lermon, 2009 state that China is the world’s largest consumer market for cosmetics and skincare. From 2000 up until 2005, the sales profits in this industry had increased by a vast 290% and by 2007, the market boosted to 170 billion RMB. This shows us that China has potential to outgrow other economies including Japan. Another point in why Australia may have found in much more beneficial to trade with China is because by the end of 2010, China's economy had increased to $5.8 trillion, in comparison to Japan, decreasing to $5.5 trillion. This would have had major impact on the relationship between Australia and China as China had taken Japan’s position as the second largest economy in the world. Also it is suggested that by the year 2021, China would have caught up to the United States as the largest economy in the world.
According to the China Internet Information Center, in 2002 the former Chinese President Hu Jintao and the former Prime Minister of Australia, John Howard, both signed an economic treaty for gas deals. it was evident that through this nation s trade was expected to triple in the next twenty years. Therefore, China’s low cost labor alongside their weak currency, Australia was bound to make a long and beneficial trading relationship.
Globalization is yet another challenge for Australia in regards to the trade with Japan; this arises from climate change to nuclear proliferation. Natural disasters are one of the biggest concerns to the western world when it comes to trade. Japan has not proved a well and stable economy due to the tsunamis and earth quakes it has suffered. According to (Ranker, 2011) Japan has the highest recorded tsunamis in the world. The number of recorded tsunamis in Japan averages to one Tsunami every 6 to 7 years. This strongly affects the country’s inflation rate, where price changes so frequently that it disturbs the stability of the country’s economy. Before the tsunami hit Japan the inflation rate was 0%, and in 2011, when the tsunami hit Japan, the inflation (……….) rate was -0.6%, this clearly indicates the instability of the country Consumer Price Index.
In reference to Australia, Japan and Chinas currencies, the Australian dollar is equal to 102.39 Japanese Yen; where as the Australian dollar is equal to 6.35 Chinese Yuan. These figures indicate that the Australian dollar can bring more from china as opposed to Japan, which is the trade market is more efficient, Australian can spend less and gain more product when dealing with China. In conclusion, it is evident that through the mentioned texts above, Australia’s relationship with China is more likely to increase due to the various points stated above such as China being the highest increasing economy in the world, their low unemployment rate. Globalisation i.e. Japans increase in natural disasters making them an unreliable country to trade with and the comparison with currencies between the three countries. Australia economically speaking is better off trading with China as their goods and services provide more for the nation for a less price which allows Australia to spend more elsewhere.

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