The mining boom’s time occurred a decade from 2000 to 2011 that created an opportunity for Australia made the huge profit from China bought the steel, the mining industry strongly developed, a thousand jobs created and the other sectors boosted. Nevertheless, the mining companies employed the foreign workers to respond to the market. The iron ore export throve Australia’s economy and China’s investment tied this country with the largest communist regime in the world. Therefore, the trade ties followed the espionage networks, cyberspy, migrant and the other facilities for China communist.
The entrepreneurs caught up an opportunity as Andrew Forest in Western Australia who made billion dollars and joined the billionaire line in Australia, he became the well-known mining magnate. Therefore, Australia seems not predictable the iron ore’s bonanza that is just a fresh period and the character of the communist economy is quite different from the democratic country. Nevertheless, the innocent businesses, investors, and companies including the monetary firms deeply involved with China, even the Reserve Bank of Australia signed the Currency Swap Agreement with the People’s Bank of China (PBC) in 2012, two government monetary firms exchanged the currency was up to $AUD 40 billion or 200 billion Yuan within 3 years and further. The most major banks in Australia link with China bank and currency.
The notorious impact happened in 2007, Australia Labor Party won the federal election, Prime Minister Kevin Rudd who speaks well Mandarin and pro-China, he recruited Treasurer Wayne Swan (now he just elected Labor Party President) and Senator Penny Wong who held Finance Minister in 6 years. Under Labor government’s era, China made the huge profit from NBN (National Broadband Network) cost $AUD 65 billion, the Insulation scheme cost taxpayers $AUD 2.7 billion. The pro-Beijing’s government in Down Under steadily drove the country into China’s orbit, actually, the country ties with China’s economy and finance and now, the consequence paid when China’s economy being downturned and Yuan lost the valuation.
Nowadays, Australia dollar plunged in 6 years from 2010 to 2015, obviously, $AUD 1.00= $USD 1.10 and in 2016 dropped $AUD 1.00 = $USD 0.69, mostly, the loss of Australia currency’s valuation occurred under Labor government (Prime Minister Kevin Rudd and Julia Gillard from 2007 to 2013). Nevertheless, in 2018, the US changed the economic policy, the fair trade overhauls the trade ties with China.
President Donald Trump adjusts the fair tariffs, so China communist regime couldn’t exploit the free market is led by socialism to make a profit and corner the global market as many decades ago. In the passage of time, the negligent policies plus the Most Favored Nation’s policy under President Bill Clinton and later President Barrack Obama helped China’s growth that helped the Red Empire transforming the US to be the economic vassal of China.
President Donald Trump leads the democratic nations fighting against the global economic terror comes from the den of China communist’s regime. The war affects the countries have the trade ties with China, actually, Europe and IMF reserve bank added Yuan after accepted Euro in 1999. So the IMF being trouble when Yuan lost the valuation when Yuan stored in IMF.
Australia couldn’t escape the loss when the Yuan declined, in 2018, Australia dollar struggles under 1 AUD = 0.75 USD. Moreover, China economy downturned and Australia affected. Nevertheless, Australia faces $AUD 1 trillion’s debt and the dollar loses the value following Yuan being troubled, it is the worst situation is waiting for the risk. It will worsen when China continues to lose the currency’s value and the economy downed, so in 2018, Australia dollar should lose more, it should be 1 AUD = 0.5 USD. That means the Australia currency will face the worst.
The fair tariffs adjust in the US could influence the countries deeply involved the economy and finance with China, actually, Yuan has been suffered the big loss and continuing to face the worst, it just happened the mid-year of 2018. The reason that Europe, actually, Canada became the only country in the world trade two way with Yuan from 2014, so the US didn’t exempt the steel tariff and Mexico signed a free trade agreement so they worry while Yuan lost the valuation that cost the job and companies linking with China.
After Prime Minister Kevin Rudd swore in 2007, he activated to establish the Asia-Pacific Bloc. The purpose promoted China, actually, Yuan currency competes with the US dollar, Euro. Therefore, his plan ruined, if not, nowadays, Australia currency will lose more valuation.
The world is nervous while China’s economy faces the problem after the fair tariffs change in the US’s market. Moreover, Yuan plunges the valuation that pulls the nations linking with China. The damage control is inevitable, but the countries could find the solution to get out the worst situation is waiting. Obviously, stay away from Yuan when its value is unstable and find out the countries have the same political pattern to trade.
Australia is the lucky country, therefore, some national leaders derailed the nation in the wrong direction. The deep debt and Australia dollar plunge that wakes the country and the politicians of both main parties./.