USA's tariff war a sign of imperialist power in decline

Written by: Ned K. on 12 April 2025

(Source:shenglufashion.com)

As the tariff trade war intensifies between the USA and China, sections of big business in Australia are backing China to come out the winner, at least on the economic front.

In the Australian Financial Review on Friday 11 April, it is reported that Geoff Raby, former Australian Ambassador in China between 2007 and 2011, says that while high tariffs imposed on China by the US government will have some negative impact, "battle- hardened China can survive".

Raby is quoted as saying, "But China has laid the groundwork for a diversified trade base. They do business with every other country in the world.'

Raby goes on to say, "The world still believes that China makes t-shirts and socks, but the real growth areas of their economy are in advanced technology like electric vehicles and complex hardware."

Other spokespersons for Australian-based capitalists are warning that whichever Party wins the coming federal election, they should be aware of China's diversified trade base and its ability to dump Australia as its main source of iron ore if the Australian Government of the day decides to side with USA as the trade war between the USA and China escalates further and even in to military conflict.

Andrew Forrest, the iron ore billionaire is one who warns that China is in a favorable position to switch to African countries as its primary source of iron ore and that China has $32 trillion in cash reserves in US dollars.

The Business Council of Australia top CEOs also are urging major political parties to "ignore push for unity with US against China." (AFR 11/4/2025).

So, sections of big business in Australia can see the writing on the wall regarding the economic decline of the USA, but their solution is to attach themselves to the rising number one imperialist power China, for fear that China will abandon Australia as its primary source of minerals, particularly iron ore.

Their solution leaves workers and other sections of the Australian people in continued dependence on an imperialist power.

The way forward is for an Australia standing on its own two feet in the world. This will only occur when the working class leads the people to an independent socialist country where a balanced economy operates for the people, not profits.

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