China's Trade Overture Snubbed: Aussies Refuse to Make 'Common Cause'

There are signs that China is beginning to worry about being economically isolated. On Wednesday, Australian Deputy Prime Minister Richard Marles announced that China had apparently made some trade overtures to Australia in response to President Trump's smacking hefty tariffs on Chinese goods.

Australia, it seems, responded by metaphorically punching China in the throat.

Australia rejected China’s offer to work together to combat President Donald Trump’s tariffs.
"We’re not about to make common cause with China," Australian Deputy Prime Minister Richard Marles told Sky News on Wednesday. "We are not going to be holding hands with China in respect of any contest that is going on in the world."

That doesn't strike one as an "Art of the Deal" overture or any angling for a better bargain. That strikes one as a flat-out rejection. That's interesting, as China buys almost a third of the Land Down Under's exports:

According to the Australian Department of Foreign Affairs and Trade, in 2023, China bought $219 billion — or 32.5% — of Australia’s total exports worldwide. Meanwhile, the department’s data shows the U.S. made up just 6% of Australia’s export sales.

Australia's top 5 exports are, as of last year, iron ores and concentrates, coal, natural gas, gold, and crude oil. (Beer came in at #6. Have you ever tried Australian beer? No, thanks!)

Also, as of 2024, Australia's primary customers for those exports are China - in the lead by a wide margin - followed by Japan, South Korea, India, and the United States coming in fifth with only 4 percent of Australia's export market. But what about imports? Australia, as it happens, imports over four times as much in dollar value from China as from the United States, with the key items being refined petroleum, cars, trucks, phones and computers.

So, the Aussies' flat rejection of China's economic overture is, in a word, interesting.

The Chinese Embassy Lashes Out With Insane Video, and It's Time to Drop the Hammer

Now, the Australian government isn't all that enchanted with President Trump's tariff plans, either:

Earlier this month, prior to the tariff pause, Australian Prime Minister Anthony Albanese said Trump’s decision to impose a 10% tariff was "not the act of a friend." He also said that the tariffs had "no basis in logic." However, Albanese made it clear that his government would not retaliate.

Well, I'm pretty sure President Trump would take issue with the "no basis in logic" part. But Australia just rejected a trade deal offered by not only their number-one export partner but also their number-one import partner as well. They're both Pacific nations, so that makes a certain amount of sense that they are major trade partners. So why would Australia so quickly and completely reject China's overture?

Could it be that they are sensing some concern on the part of China? Is China looking to firm up its other trading partners in anticipation of losing access to much of the American market? Because without the United States market, China is, to put it mildly, hurting. Despite the efforts of Democrats, we're still the world's largest economy. And President Trump is making it a mission to isolate China.

Of course, China could end all this easily: lift their tariffs on American goods as well as on the rest of the world, stop playing games with their currency valuation, and stop trying to steal the rest of the world's intellectual property. But I think we all know the odds of that happening.

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