Homework answers / question archive / ECX2630-ECX5630 Chinese Economy and Global Business S1 2021 Assignment Instructions for students: Due Date: 11:30pm,14 May 2021 Weighting/Value: 15% Word limit: Maximum of 1,500 words (excluding references) but can be shorter Presentation requirements: The research essay need to be typed into Microsoft Word and saved in either Word or PDF format

ECX2630-ECX5630 Chinese Economy and Global Business S1 2021 Assignment Instructions for students: Due Date: 11:30pm,14 May 2021 Weighting/Value: 15% Word limit: Maximum of 1,500 words (excluding references) but can be shorter Presentation requirements: The research essay need to be typed into Microsoft Word and saved in either Word or PDF format

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ECX2630-ECX5630 Chinese Economy and Global Business S1 2021 Assignment Instructions for students: Due Date: 11:30pm,14 May 2021 Weighting/Value: 15% Word limit: Maximum of 1,500 words (excluding references) but can be shorter Presentation requirements: The research essay need to be typed into Microsoft Word and saved in either Word or PDF format. Submission details: On-Line submission via Moodle Submission. The Moodle Submission will have the integrated Turnitin to check the similarity score (Pease see https://guides.lib.monash.edu /turnitin for more information). Please ensure the Turnitin similarity score is lower than 20%; otherwise, your work will be returned, and penalty will apply As you should be aware, the Moodle Submission has the Turnitin function which will check the similarity of your assignment against a wide range of other writings. Please do you best to ensure the similarity rate is well below 20%; otherwise, your assignment will be returned for rewriting until the similarity score is below 20% and late lodgement penalty (see below) will apply. Please check the similarity score before you submit the assignment To reduce the similarity, • First and foremost, complete your assignment by yourself and independently; • Secondly, you should NOT repeat the questions in your assignment tasks. Please be noted, this assignment is not a Q&A, but an essay - so please embed these questions in your essay; • Thirdly, you may put all references in a separate document to be uploaded separately along with your main text. • Fourthly, make sure to upload your coversheet via a separate link in Moodle. Plagiarism is strictly prohibited. You should familiarise yourself with what is plagiarism and university guidelines on plagiarism available here: Penalties for late lodgement: A penalty of 1 mark will be deducted for each day (including a fraction of a day) this it is late. Assessment coversheet: Work submitted for assessment must be accompanied by a completed copy of the Faculty Cover Sheet which has been signed by the student. No assignment will be accepted or marked if it is not accompanied by a signed Cover Sheet. Your name, I.D. number, and the name of the staff member should be shown on the Cover Sheet. Estimated return date: Marked assignments will be returned to students before the final Assessment. Please retain the marked assignment until the result is finalised. Criteria for marking: The assignment will be assessed based on the following criteria 1. Coherence of argument: • Having a minimum of three (3) references (books or articles from reputable publishers), in addition to the references mentioned in this paper: 1% • Relevance to the topic: 4% • Logical consistency 4% 2. Originality 3% 3. Presentation (No oral presentation is required. Precision in argument and use of terms, grounding in evidence, and clarity and concision in prose) 3% Learning objectives assessed: This assessment task is designed to test your ability to do independent research, and your analytical and writing skills. It is an individual task. Details of Task Write an essay to exam the impact of the slowdown of the Chinese economy on other economies in Asia and Australasia (Asia and Australia-New Zealand and neighbouring Pacific Islands) region. There are strong indications that the Chinese economy is slowing down after three decades of rapid growth. Its rapid growth transformed not only China’s own economy but also had a huge impact on other economies in Asia and the world. China emerged as the ‘assembly centre’ of production networks and has played a major role in the deeper integration of economies in this region. Clearly a Chinese slowdown will have major impacts on the economies of this region. Also note that the Chinese slowdown is happening at a time when the global economy, including the major OECD economies, is facing difficult times. The essay should focus on a selected economy in Asia or the Australia-New Zealand region, and discuss the implications of the Chinese economy slow down on that economy. The essay should describe, proving figures and data is necessary, the trade and investment linkages of the selected economy with China and the rest of the world, and how these relationships have evolved during the period of the ‘China boom’. It should then discuss how a slowdown in Chinese economy impacts on the selected country through the various channels (trade, tourism, investment etc.), noting that there will be both direct impacts as well as indirect impacts. The indirect impacts come from the impact of the Chinese slowdown on other countries of the world, which in turn will impact on the selected economy. You should discuss what may be the impact on important economic variables such as, for example, the country’s real income, its balance of payments position, employment and investment. Useful reference readings: Dizioli, et. al. (2016),: “Spillovers from China's Growth Slowdown and Rebalancing to the ASEAN-5 Economies”, IMF Working Paper, available at: https://www.elibrary.imf.org/view/journals/001 /2016/170/article-A001-en.xml?language=en Guttmann, Hickie, Rickards, Roberts, (2019), Spillovers to Australia from the Chinese Economy, RBA. Available at: https://www.rba.gov.au/publications/bulletin/2019/jun/spillovers-to-australia-from-thechinese-economy.html China Briefing, (2019), “How a China slow down could affect your business”, available at: https://www.china-briefing.com/news/china-slowdown-affect-business/ MONASH BUSINESS SCHOOL ECF2630/ECX5630 Chinese Economy and Global Business Topic 6: The Panda and the Kangaroo: SinoAustralia economic relations What will we discuss in this topic? ? ? ? ? The diplomatic relations between Australia and China The rapid development of economic relations in 1990s and onwards Comparative advantages and trade in merchants China-Australia free trade agreement (ChAFTA) and its impacts on Australia’s services sector: education, business services, health services, and tourism) ? US or China, Friends or Customers: Australia’s dilemma since John Howard ? “Five Eyes” alliance, Hua Wei and 5G deployment, South China Sea “freedom of navigation”, what is the future of Australia-China relations? 2 MONASH BUSINESS SCHOOL MONASH BUSINESS SCHOOL Diplomatic and economic relations Sino-Australia relations ? The first Chinese consulate in Australia was established in 1909, and diplomatic relations were established in 1941. Australia continued to recognise the Republic of China (ROC) government after it lost the Chinese Civil War and retreated to Taiwan in 1949 but switched recognition to the People's Republic of China (PRC) on 21 December 1972 (predated that of US by 7 years), when Gough Whitlam was the Prime Minister. Stephen Fitzgerald became the first Australian ambassador to PRC. ? The relationship between China and Australia has grown considerably over the years. Both countries are actively engaged economically, culturally and politically which spans numerous organizations such as APEC, East Asia Summit and the G20. China is Australia's largest trading partner since 2007, and the largest export market since 2009, and has invested in Australian mining companies. 4 MONASH BUSINESS SCHOOL Monthly AUD (m) of Australian merchandise exports to China since 1988 Source: This image is based on Australian Bureau of Statistics data 5 MONASH BUSINESS SCHOOL Monthly AUD (m) of Chinese merchandise exports to Australia since 1988 Source: This image is based on Australian Bureau of Statistics data 6 MONASH BUSINESS SCHOOL Sheng, Y. and Song, L., (2008), “Comparative Advantage and Australia-China Bilateral Trade”, Economic Paper, Vol. 27 No. 1 March 2008 pp. 41-56 7 MONASH BUSINESS SCHOOL Trading with China ? In late 2007 China overtook Japan to become Australia's largest trading partner, and in 2009 became Australia's largest export market. Australia is China's seventh largest trading partner. ? Forty years ago, two-way trade was less than $100 million. Now it is more than $100 billion - 1,000 times in 40 years, CAGR=18.85% ? In 2018-19, Australia’s two-way trading with China accounted for 26 per cent of our trade with the world. Two-way trade reached a record $235 billion in 2018–19 (up 20.5 per cent year on year). ? Australia’s exports to China grew by 23.9 per cent to reach the highest level ever ($153 billion), driven by demand for Australian iron ore, coal and LNG. ? China remained Australia’s biggest services export market, particularly in education (over 205,000 students in 2018, an 11 per cent increase year on year) and tourism (over 1.4 million Chinese visitors in 2018–19). 8 MONASH BUSINESS SCHOOL Investment ? China is the fifth largest foreign direct investor in Australia ($40.5 billion in 2018), accounting for 4.1 per cent of total foreign direct investment (FDI). ? In recent years, Chinese investment has broadened from mainly mining to include sectors such as infrastructure, services and agriculture. Australia's foreign investment review framework is established clearly in legislation providing openness and transparency. ? Australian FDI in China reached $13.5 billion in 2018. Australia’s expertise in banking and wealth management services has seen financial institutions become some of the largest Australian investors in China. 9 MONASH BUSINESS SCHOOL Trade and Investment in 2018-19 Source: https://www.dfat.gov.au/sites/default/files/chin-cef.pdf 10 MONASH BUSINESS SCHOOL Trade and Investment in 2019 Source: https://www.dfat.gov.au/sites/default/files/chin-cef.pdf 11 MONASH BUSINESS SCHOOL China’s ODI in Australia 12 MONASH BUSINESS SCHOOL Stock of the overall Chinese investment in Australia 13 MONASH BUSINESS SCHOOL Flow of the Chinese investment in Australia 14 MONASH BUSINESS SCHOOL Inter- and Intra- Industry trade Sheng, Y. and Song, L., (2008), “Comparative Advantage and Australia-China Bilateral Trade”, Economic Paper, Vol. 27 No. 1 March 2008 pp. 41-56 15 MONASH BUSINESS SCHOOL Benefits of bilateral trade Sheng, Y. and Song, L., (2008), “Comparative Advantage and Australia-China Bilateral Trade”, Economic Paper, Vol. 27 No. 1 March 2008 pp. 41-56 16 MONASH BUSINESS SCHOOL Benefits of bilateral trade Sheng, Y. and Song, L., (2008), “Comparative Advantage and Australia-China Bilateral Trade”, Economic Paper, Vol. 27 No. 1 March 2008 pp. 41-56 17 MONASH BUSINESS SCHOOL MONASH BUSINESS SCHOOL China Australia Free Trade Agreement (ChAFTA) China-Australia Free Trade Agreement ? Negotiation of ChAFTA commenced in July 2005 ? 17 June 2015: Australian trade and investment minister Andrew Robb and the Chinese minister of Commerce Gao Hucheng signed in Canberra of the China-Australia Free Trade Agreement; ? 22 October 2015: ChAFTA legislation passed by the House of Representatives; ? 9 November 2015: ChAFTA legislation passed by the Senate; ? 20 December 2015: ChAFTA entered into force; first round of tariff cut; ? 1 January 2016: 2nd round of tariff cut; ? 1 January 2017: 3rd round of tariff cut ? … 19 MONASH BUSINESS SCHOOL For example: ChAFTA and tariffs in beefs 20 MONASH BUSINESS SCHOOL Tariffs: DFAT’s FTA Portal 21 MONASH BUSINESS SCHOOL HS Code: 1901.10.10 22 MONASH BUSINESS SCHOOL China-Australia trade: historical trend 23 MONASH BUSINESS SCHOOL Market Access: ChAFTA will benefit Australia’s services exporting ? Legal services: Guaranteed market access for Australian law firms to establish commercial associations with Chinese law firms in the Shanghai Free Trade Zone (SFTZ) ? Education services: China has listed 68 additional Australian private higher education institutions registered on the Commonwealth Register of Institutions and Courses for Overseas Students on a key Chinese Ministry of Education overseas study website ? Telecommunications services: Guaranteed market access for Australian companies investing in specified value-added telecommunications services in the SFTZ, providing greater certainty for Australian telecommunications investments in the SFTZ 24 MONASH BUSINESS SCHOOL Market Access: ChAFTA will benefit Australia’s services exporting ? Financial services: China committed to deliver new or improved market access to Australian financial services providers in the banking, insurance, funds management, securities, securitisation and futures sectors ? Tourism and travel-related services: Guaranteed market access for Australian services suppliers to be able to construct, renovate and operate wholly Australian-owned hotels and restaurants in China ? Health and aged care services: Australian service suppliers can establish profit-making aged care institutions throughout China, and wholly Australian-owned hospitals in certain provinces, enabling Australian private health sector's offerings of medical services through East Asia to expand. 25 MONASH BUSINESS SCHOOL Australia legal firms, banks, and the aged cares facilities Details can be found at: https://www.dfat.gov.au/trade/agreements/in-force/chafta/factsheets/Pages/chafta-outcomes-at-a-glance 26 MONASH BUSINESS SCHOOL MONASH BUSINESS SCHOOL China’s Direct Investment in Australia China’s ODI in Australia 2007-2018 28 MONASH BUSINESS SCHOOL Chinese ODI by industry in 2018- Percentage 29 MONASH BUSINESS SCHOOL Chinese ODI by industry in 2018 - Value 30 MONASH BUSINESS SCHOOL Chinese ODI by States in 2018 31 MONASH BUSINESS SCHOOL Chinese ODI In NSW in 2018 32 MONASH BUSINESS SCHOOL Chinese ODI In Victoria in 2018 33 MONASH BUSINESS SCHOOL Chinese ODI In SA in 2018 34 MONASH BUSINESS SCHOOL Chinese ODI In QLD in 2018 35 MONASH BUSINESS SCHOOL Chinese ODI In TAS in 2018 36 MONASH BUSINESS SCHOOL Chinese ODI In WA in 2018 37 MONASH BUSINESS SCHOOL China ODI – Private Sector versus SOEs 38 MONASH BUSINESS SCHOOL Investment Climate 39 MONASH BUSINESS SCHOOL Investment Climate 40 MONASH BUSINESS SCHOOL Chinese government policies regarding ODI ? Encouraged investment: – BRI infrastructure and construction – High-tech and R&D – Resources ? Restricted investment – Real estate, hotels, cinemas, entertainment and sports club – Equity investment funds or investment platforms 41 MONASH BUSINESS SCHOOL MONASH BUSINESS SCHOOL Political and Economic tensions between Australia and China China-Australia Relations ? Despite strong trade bonds, China-Australia Relations started to deteriorate in 2016, concerns over – Australia opposed China’s territorial claims to the South China Sea based on the “nine-dash line” map – Australia’s concern of China’s attempts to influence Australian politicians and exert pressure on international students studying in Australia – The ”Soft” and “Sharp” power - interferences of the Australian economic and political sphere: Confucius institutes, political donations, control of the Chinese students in Australia, and The Belt and Road Initiative – https://www.youtube.com/watch?v=7T_Lu1S0sII 43 MONASH BUSINESS SCHOOL China-Australia Relations ? Despite strong trade bonds, China-Australia Relations started to deteriorate in 2016, concerns over – In July 2019, the United Nations ambassadors from 22 nations, including Australia, signed a letter condemning China's mistreatment of the Uyghurs as well as its mistreatment of other minority groups, urging the Chinese government to close the Xinjiang re-education camps – Australia called for an independent investigation on the origins of COVID-19 44 MONASH BUSINESS SCHOOL “Nine-dash line” 45 MONASH BUSINESS SCHOOL A list of trade disputes in 2020 ? ? ? ? ? ? 13 February 2020: The Australian Dumping Commission assesses a possible continuation of dumping duties on Chinese aluminium extrusions 17 February 2020: The commission initiates anti-dumping investigation against China, looking at the sales of aluminium micro-extrusions, which are used for domestic window flyscreens and television aerials, made by Chinese companies Guangdong Jiangshen Aluminium and Guangdong Zhongya Aluminium 28 February 2020: Australian concludes, following a review, it will continue to impose anti-dumping duties on Chinese deep drawn stainless steel sinks 31 March 2020 Australia initiates anti-dumping investigation into cheap precision pipe and tube steel from China, South Korea, Taiwan and Vietnam 16 April 2020 The commission initiates another anti-dumping investigation into A4 copy paper exported by China, Brazil, Indonesia and Thailand 21 April 2020 Australian Prime Minister Scott Morrison discusses a probe into the origins of the coronavirus with world leaders, including US President Donald Trump, German Chancellor Angela Merkel and French President Emmanuel Macron 46 MONASH BUSINESS SCHOOL A list of trade disputes in 2020 ? ? ? ? ? ? 11 May 2020 China bans imports from four major Australian meat processing plants 13 May 2020 Australian Dumping Commission concludes, following a review, it will continue to impose anti-dumping duties on Chinese silicon metal 18 May 2020 China confirms 80.5% tariff on Australian barley exports following the conclusion of its anti-dumping investigations 27 May 2020 Australian initiates an anti-dumping investigation into painted steel strapping from China and Vietnam 30 June 2020 Anti-dumping investigation widens to include aluminium zinc coated steel from China and Vietnam 10 July 2020 Dumping commission assesses possible continuation of duties on Chinese steel reinforcing bars 47 MONASH BUSINESS SCHOOL A list of trade disputes in 2020 ? ? ? ? ? ? 13 July 2020 Australia initiates an anti-dumping investigation into copper tubes from China and South Korea 27 July 2020 Australia Dumping Commission assesses possible continuation of dumping duties on Chinese hot-rolled rods in coils of steel 18 August 2020 China’s Ministry of Commerce confirms it has started an anti-dumping investigation into Australian wine imports following a complaint from the China Alcoholic Drinks Association 25 August 2020 China Mengniu Dairy confirms it will not acquire Japanese drinks company Kirin Holding’s Australia-based asset Lion Dairy & Drinks after failing to get approval from the Australian government 31 August 2020 China announces a countervailing investigation into subsidised Australian wine imports 31 August 2020 China halts barley imports from Australia’s CBH Grain, the country’s biggest grain shipping company, because harmful weeds were found in the cargoes 48 MONASH BUSINESS SCHOOL More recent disputes ? On 6 October 2020, a group of 39 countries, including Australia, New Zealand, the U.S., made a statement at the United Nations to denounce China for its treatment of ethnic minorities and for curtailing freedoms in Hong Kong. ? On 30 November 2020, the Australian Prime Minister Morrison demanded a formal apology from the government of China for posting an “offensive” and “outrageous” doctored image of an Australian soldier holding a bloodied knife against the throat of an Afghan child, a reference to the Brereton Report. 49 MONASH BUSINESS SCHOOL Trade relations continue to be strong 50 MONASH BUSINESS SCHOOL Especially, the export of iron ore Source: banchero costa &c s.p.a. 51 MONASH BUSINESS SCHOOL Especially, the export of iron ore Source: banchero costa &c s.p.a. 52 MONASH BUSINESS SCHOOL Iron ore prices during the COVID-19 pandemic Source: https://markets.businessinsider.com/commodities/iron-ore-price 53 MONASH BUSINESS SCHOOL MONASH BUSINESS SCHOOL COVID-19 and the future of AustraliaChina Relations Geopolitics of China AFR Business Summit, 15 March 2018 ? http://www.afr.com/video/brand/businesssummit/geopolitics-of-china-20180315-53d9e ? Andrew Shearer: Center for Strategic and International Studies ? Bob Carr: former Minister of DFAT ? Dennis Richardson: former secretary of DFAT and Defense 55 MONASH BUSINESS SCHOOL COVID-19 and the future of Australia-China relations ? https://www.monash.edu/business/cdes/ourevents/webinar-series/past/covid-19-recent-performanceand-prospects-of-the-chinese-economy 56 MONASH BUSINESS SCHOOL Australia’s place in the world ? 2020 Thought Capital episode - Monash Business School – Paul Kalfadellis – Nicola Charwat – He-Ling Shi 57 MONASH BUSINESS SCHOOL