Australia is making strategic moves to secure China's market ahead of the US, capitalizing on global trade shifts triggered by American tariff policies. While Australia faces a trade deficit with the US, it enjoys a massive US$70 billion trade surplus with China. In 2024 alone, Australian exports to China surged past AUD 200 billion—36.7% of its total exports, dwarfing traditional markets like the US, Japan, and South Korea.

This reliance is no accident. Since 2017, Australia’s consistent trade surplus has been fueled by Chinese demand for iron ore, LNG, and lithium. Now, as US tariffs disrupt global supply chains, Australia is poised to replace American exports in key sectors:

 

Energy: Australia dominates China’s LNG imports (annual revenue >AUD 100B) and has filled the coal void left by US sanctions, sharing the market with Indonesia.

Agriculture: Tariffs have wiped US beef off Chinese shelves, with Australian beef exports soaring 40% YoY to 21,885 tons in early 2025 (Meat and Livestock Australia data).

Prime Minister Albanese’s recent China visit—timed before Trump’s potential return—aimed to lock in deals early. His itinerary spotlighted Chengdu, a lithium-rich hub in China’s west, signaling Australia’s bid to tap into regional development. In exchange, Australia offered China increased stakes in WA lithium mines (from 25% to 49%) and pushed for partnerships in clean energy tech, from wind/solar to low-carbon steelmaking.

By securing Chinese orders ahead of the US, Australia not only shields its economy but hands China leverage in negotiations. As profits trump politics, this move exposes how quickly the "Five Eyes" alliance crumbles before hard cash.

​