Australia: 'Signs point to economic risks in relying on China'

from smh.com......

"The political unrest rippling through Libya, Egypt and Bahrain is a timely reminder of the economic risks Australia could face if it becomes too reliant upon authoritarian and economically unstable regimes.

While those three nations represent only 0.3 per cent of our total exports and imports ($950 million), we do have one trading partner that shows the signs of becoming a major economic risk to us in the future – China.

As Australia's most important trading partner ($83 billion), China represents our largest and riskiest trade relationship. Representing 20 per cent of our total exports and imports, much of Australia's current and future prosperity is predicated upon the ongoing stability of this ravenous giant.

Underneath the polished veneer of its one-party edifice, China's internal situation is best described as perpetually unstable. Notwithstanding 30 years of breathtaking economic expansion, China remains one of the poorest nations in the world. According to the World Bank, there are 270 million Chinese who live on less than $US2 a day, and a further 210 million who live on less than $US1.25.

..........................In terms of standard of living averages, annual GDP (PPP) per capita measurements, the Internationa Monetary Fund ranks China 93rd in the world, well behind violently unstable nations such as Libya and Bahrain, and commensurate with revolutionary nations such as Egypt. As the old saying goes, ''a society is only three meals away from anarchy''. If that is true, how stable can China be when more than one-third of its people live on the edge of starvation?"..................................read more here