Australia has been forced to rethink its industrial policy after an acute shortage of ventilators and protective equipment exposed what critics labelled its “dependence” on China. Canberra has promised to nurture local manufacturing to ensure it is less reliant on global supply chains.
Australia is a nation that has built its economy on free trade and shipping raw materials to China. So the new policy represents a pivotal change for the conservative government.
“This crisis has exposed deep vulnerabilities in global supply chains and how many western nations have allowed their manufacturing sectors to become hollowed out amid low cost competition, particularly from China.”
“Nations are realising low-cost goods are not the only priority and China will not retain the dominant position in manufacturing it enjoyed prior to this crisis.”