Asia | Surviving the dragon

Australia has faced down China’s trade bans and emerged stronger

The “lucky country” may be uniquely able to endure Chinese bullying

GDANSK, POLAND - OCTOBER 22: A wheel-loader organizes imported coal before loading into dump truck at the Gdansk Port on October 22, 2022 in Gdansk, Poland. During the visit, Prime Minister Mateusz Morawiecki chaired the coal committee meeting regarding the distribution of the imported coal to different parts of the country. Since the Russian invasion of Ukraine, Poland stopped importing Russian coal and since them, has closed deals with Australia and other countries to replace the lack of coal due to the embargo to Russian coal. (Photo by Omar Marques/Getty Images) — Image: Getty Images

May 23rd 2023|BEIJING and SYDNEY

WHEN China launched a campaign of economic coercion against Australia in 2020, Communist Party bosses thought they had crushing leverage. The economies of the two countries—resource-rich Australia and commodities-hungry China—were complementary and closely connected. By massively curbing shipments of everything from timber to coal, lobsters, barley and wine, on pretexts including exaggerated concerns about trade practices and pest infestations, China imposed a A$24bn ($16bn) hit on Australia, representing 5.5% of its total annual exports. Yet it did not succumb. And like a surfer surviving a shark attack with no more than a lightly gnawed board, Australia is now emerging from three years of Chinese bullying in remarkably good shape.