Monday 27 Sep 2021 | 10:28 | SYDNEY
What's happening on
  • 27 Sep 2021 06:00

    Dankeschön Frau Merkel

    A former Australian ambassador to Germany reflects on the Chancellor’s significant impact in the Indo-Pacific.

  • 24 Sep 2021 12:00

    Afghanistan: The Hazara dread

    What the Taliban takeover means for one of the most persecuted peoples in the world.

  • 24 Sep 2021 10:00

    Whipping the Covid-19 vaccine market into shape

    The COVAX vaccine procurement facility has run a remarkable race, but needs stable funding for long-term success.

Beyond Fortress Australia

The reality of living in a pandemic has dawned on Australia. Covid cases at the time of writing are high and still climbing. The virus is here to stay. Equally clear is that ring-fencing the country from the world — the ‘Fortress Australia’ policy — is no longer viable

Candour, at last, on China – but then what?

The most important foreign policy speech by a cabinet minister so far this year was delivered last Monday. That Treasurer Josh Frydenberg was the speaker was a little surprising. A little less surprising was that he identified an ascendant, muscular China as a first order threat to the country’s

Economic diplomacy: Australia Inc’s new world order

Risky business Australia’s sovereign wealth fund – the Future Fund – was established 15 years ago when the rivers of gold from selling iron ore to China were just starting to flow and country was only about half-way through its record-setting 28 years of economic growth. The Future Fund’s

Economic diplomacy: Patent politics and trade deal twists

Biden’s jab First it was new carbon emission cuts, and then a global minimum corporate tax. But it is hard to beat the Biden administration’s move to shaft the pharmaceutical industry lobby over vaccine patents for putting the US back at the heart of global public policy. The devil will be in

Covid recovery, in Australia and the world

In much of the world, Covid-19 infections continue apace, but the global economy is rapidly recovering from last year’s slump. World trade volumes and industrial production were both higher in January than they have ever been, according to data collected by the Netherlands central bank. Releasing

The big bark but small bite of China’s trade coercion

Beginning last May, China has hit Australia with a barrage of trade sanctions in a fairly overt attempt at economic coercion. It’s still early days, but it’s worth taking stock of what the economic impact has been so far. The fact that China’s trade sanctions have taken place

Australia’s place in a decarbonising world economy

A welcome change is underway in the international effort to combat dangerous global warming. It will have big implications for the Australian economy. The United States, European Union and China – the world’s three biggest emitters – are now all targeting net zero emissions by mid-century (

Economic diplomacy: Federal budget hits and misses

Hide and seek It says a lot about the extent of the pandemic cash splash and the domestic politics of the federal budget that an unexpected rise in development aid spending didn’t even make the Treasurer’s speech. Aid spending will rise about 4% this year, confounding expectations that this

Economic diplomacy: A snapshot of overseas investment trends

Going outOne of the big questions facing Australian companies in the new world of reshoring and diversification is how to get the balance right in a time of disruption and power shifts. The federal government and two recent independent reports have told business to invest more in Asia, against the

Economic diplomacy: Borders, barriers and obstacles

Homeward bound While Australia’s embrace of economic sovereignty has so far involved more rhetoric than real financial resources, cash incentives for reshoring manufacturing are gathering pace in other countries. Last week’s €100 billion (A$162 billion) economic stimulus program from French

Economic diplomacy: Spilled milk and foreign wages

Taking one for the team Spare a thought for Japanese company Kirin, which entered Australia in the vanguard of new ambitions for Asian economic engagement but is now a victim of an undeclared trade war with China. Treasurer Josh Frydenberg’s move to prevent Kirin selling its unsuccessful Lion

Australia doesn’t need to choose between guns and butter

The Morrison government’s plan for defence spending outlined in the Defence Strategic Update last month has been incorporated into the Canberra consensus, with Labor offering no criticism and the mainstream press largely supportive. Yet as the government grapples with debt and deficit as the

Economic diplomacy: A call to syringes, not arms

Going out or staying in With Australia experiencing its first recession in a generation, potential differences are emerging over whether future prosperity will come from more business integration with high-growth Asia or from preserving capital for economic sovereignty at home. These, of course,

Economic diplomacy: Diversification dilemmas

Costing the D word Diversification might be the word of the moment in the lexicon of Australian trade debate, even though few advocates make much attempt to explain how it will actually work. But now we have two interesting efforts to quantify just how selected reductions in trade with China in

What’s so strategic about baby-food?

The discussion about China’s bid for baby-formula supplier Bellamy’s Organic shows the usual confusion about just what should guide decisions on foreign investment in Australia. Of course there will be some proposals that are defence-strategic. But baby formula is not one of them. Nor is

The Economist: a change of heart

This week’s Economist magazine features Australia on the cover with the caption: “Aussie Rules: what Australia can teach the world”. Inside, the text is effusive: Australia is “the wonder down under”, “possibly the most successful rich country”. How times (and predictions) change!

Australia, Asia, and the “Wealth of Nations”

How does Australia’s economy align with those of our Asian neighbours? What are the development challenges facing nearby South East Asian countries? And just how large is China’s economy? These questions are of particular interest this week as the ASEAN-Australia Special Summit is held in Sydney

No urgency in cutting Australian corporate tax

Prime Minister Malcolm Turnbull returned from Washington last month even more convinced of the need for deep cuts in Australia’s 30% corporate tax rate, which is well above that in the US. Given the numbers in the Australian Senate, however, it is unlikely the proposed tax cut will pass. How

Company tax cuts: America versus Australia

The expert panel on the ABC’s Q&A program earlier this month was hopelessly confused in comparing Donald Trump’s cut in US company tax with the proposed company tax cuts in Australia. Although it’s often useful to compare domestic economic policy initiatives with those

Behind the Australia–Canada ‘wine war’

Australia has formally lodged a complaint against restrictions some Canadian provinces have placed on the sale of imported wine in grocery stores, in what has been described, somewhat dramatically, as a 'wine war'. Australia's action was described in the Ottawa Sun under the headline&

Anti-migration sentiment the chief threat to openness

In Choosing Openness Andrew Leigh makes a robust, refreshed case for free trade and investment. Both are important sources of the acceleration of global output growth over the last two decades, and of Australia’s long economic expansion since 1991. But while the case for relatively free investment

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