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TRADE (ECONOMIC PROSPERITY (SUCCESSFUL (China's trade figures -->…

- - - - Creating transport links with China and make China a vital part of global trading
      - Has free trade agreements with several states, including ASEAN, Australia and New Zealand
      - According to the US Nation Intelligence Council's Global Trend Report (2012) China is predicted to be the largest economic power by 2030
      - For Australia, in particular, China is the country's largest trading partner, $113.3 billion in 2011 trade volume (ABC NewsAus 2012)
      - In 2017, China had 10.93% of Global imports (2nd to US) and 13.81% of Global exports (largest in the world)
      - The value of China's exports in goods annually surpasses the amount it imports from the rest of the world
- - - - Only trade with states who don't recognise Taiwan
      - China places economic sanctions on states that recognise Taiwan
- - - - Trade is a peaceful way to increase power on a global scale compared to using military means
    - - China has bilateral agreements with over 100 countries and economies including Austria, Canada, Germany, Japan, South Korea and the United Kingdom
    - - China maintain 14 Free Trade Agreements with its trade and investment partners, and is negotiating or implementing an additional 8
      - FTA partners are ASEAN, Singapore, Pakistan, New Zealand, Hong Kong, Macao and Taiwan
  - - - 21st of February 2016, China ended all investments and financial support with North Korea
      - Faced criticiims internationally for trading with them, most significantly from the US
      - Had to stop trading after UN sanctions
    - - Fears of "debt-trap diplomacy"
      - Sri Lanka's Hambantoa Port - Government could not afford the terms to pay back the money it borrowed to China so gave 99 year lease
- - - - China/ Australia Free Trade Agreement
        
        Entered into force in Dec 2015
        
        Reductions in tariffs on Australian exports including, meat, wine, dairy, wool and pharmaceuticals
        
        Up to 95% of Australian exports will not have tariffs when entering China
        
        Should increase Australian exports by about $17b over the next 20 years
      - Belt & Road Initiative
        
        China claims it promotes "mutual benefit... growth, peace and stability"
        
        Push for Chinese dominance in global affairs with a China centred trading network
        
        Development strategy adopted by the Chinese government involving infrastructure developments and investments
        
        Will increase China's trade (possibly by $1t US per year)
  - - - Areas where China is most likely to come into conflict with its neighbours including Vietnam, Taiwan, Philippines and Malaysia
      - Anti-Access/ Area Denial - China has militarised areas of the South China Sea - giving themselves power over the South China Sea
      - Sea carriers have tremendous strategic importance - 1/3 of the world's shipping passes through it, carrying over $5.3 trillion in trade every year
      - Contains lucrative fisheries - crucial for the food security in Southeast Asia
      - 11 billion barrels of oil and $190 trillion in natural gas reserves are believed to lie beneath its seabed
      - China claims that they had power over it in the 15th century and it was stolen from them from other powers
      - China is breaking international laws by claiming ownership over the waters and cannot use the resouces in it until there is no threat