Invest
US-China trade war and tech affecting Aus finances
The Australian economy is in a unique position at the moment – stuck between economic ties to the east and military ties to the west.
US-China trade war and tech affecting Aus finances
The Australian economy is in a unique position at the moment – stuck between economic ties to the east and military ties to the west.

In a recent speech, the secretary of the Department of Prime Minister and Cabinet, Dr Martin Parkinson, said Australia is facing challenges that will determine the country’s future in the Asia-Pacific region: the possibility of a US and China trade war and the flow-on effects of technology.
Great power competition
If the United States and China embark on the predicted trade war, Dr Parkinson forebode that the impact this would have on Australia’s economy could “sink” the country.
“Australia and the region have much to lose from a concerted effort to decouple the US and Chinese economies, possibly even more than the damage that will be done to each of the superpowers themselves,” Dr Parkinson warned.

Technology
Dr Parkinson went on to note the rise of technology as also providing a number of new challenges for the region as is the predicament currently facing Australia’s policymakers.
With technology moving countries from a manufacturing economy towards a service economy, Dr Parkinson highlighted the risks this could create for Australia due to increased competition and nationalism.
He also argued that technology is one of the reasons why the West’s central banks are struggling to lift inflation due to a flattening of the trade-off between unemployment and inflation.
It’s not all doom and gloom, however, with the economist arguing that the changing dynamics in the region could also provide immense benefits to Australia.
How Australia can cope going forward
The Asia-Pacific region is likely to remain fast growing, Dr Parkinson said, with three-quarters of GDP growth coming through the Asia-Pacific region, as Indonesia, China, India, Vietnam and Japan continue to grow their own economies.
Dr Parkinson said Australia’s key successes over the last three decades have been made possible through policy, knowledge and consistency of national character.
He also considered free trade agreements and the expansion of trade opportunities with country groups as making it easier for foreign countries to trade with Australia.
About the author

About the author


Economy
Economist calls for July RBA rate cut following inflation data
An economist from State Street Global Advisors has called for the Reserve Bank of Australia to cut interest rates in July following today's Consumer Price Index data for June. Read more

Economy
GDP data prompts economist to predict faster RBA rate cuts
Australia's latest GDP growth data has come in significantly below expectations, prompting an economist to suggest the Reserve Bank may need to ease monetary policy more aggressively. Read more

Economy
Global markets face turbulent start amid tariff concerns, but outlook remains cautious
Global equity and bond markets have experienced a turbulent start to 2025, primarily due to concerns that a potential tariff-driven trade war could heighten inflation and recession risks. Read more

Economy
RBA may cut rates faster if GDP data disappoints, economists say
The Reserve Bank of Australia may cut interest rates more quickly if next week's GDP data disappoints, economists said following today's consumer price index data for May. Read more

Economy
RBA delivers widely expected rate cut as inflation optimism balances global uncertainty
The Reserve Bank of Australia has cut the cash rate by 25 basis points, delivering on widespread market expectations while signalling a clearer directional shift towards less restrictive monetary ...Read more

Economy
Economist warns strong jobs data may delay further RBA rate cuts
Strong employment growth in April has put expectations for multiple interest rate cuts at risk, though upcoming economic data may clarify the need for lower rates, according to State Street Global ...Read more

Economy
Australian inflation continues downward trend, nearing RBA target
The Australian Bureau of Statistics (ABS) has reported that the Consumer Price Index (CPI) rose 2.7 per cent in the year to August, down from 3.5 per cent in July and 3.8 per cent in June. Read more

Economy
UK markets poised for gains after election, global geopolitical risks remain
Chris Iggo, Chief Investment Officer at AXA Investment Managers, has provided an optimistic outlook for UK markets following the recent general election, while cautioning about ongoing global ...Read more

Economy
Economist calls for July RBA rate cut following inflation data
An economist from State Street Global Advisors has called for the Reserve Bank of Australia to cut interest rates in July following today's Consumer Price Index data for June. Read more

Economy
GDP data prompts economist to predict faster RBA rate cuts
Australia's latest GDP growth data has come in significantly below expectations, prompting an economist to suggest the Reserve Bank may need to ease monetary policy more aggressively. Read more

Economy
Global markets face turbulent start amid tariff concerns, but outlook remains cautious
Global equity and bond markets have experienced a turbulent start to 2025, primarily due to concerns that a potential tariff-driven trade war could heighten inflation and recession risks. Read more

Economy
RBA may cut rates faster if GDP data disappoints, economists say
The Reserve Bank of Australia may cut interest rates more quickly if next week's GDP data disappoints, economists said following today's consumer price index data for May. Read more

Economy
RBA delivers widely expected rate cut as inflation optimism balances global uncertainty
The Reserve Bank of Australia has cut the cash rate by 25 basis points, delivering on widespread market expectations while signalling a clearer directional shift towards less restrictive monetary ...Read more

Economy
Economist warns strong jobs data may delay further RBA rate cuts
Strong employment growth in April has put expectations for multiple interest rate cuts at risk, though upcoming economic data may clarify the need for lower rates, according to State Street Global ...Read more

Economy
Australian inflation continues downward trend, nearing RBA target
The Australian Bureau of Statistics (ABS) has reported that the Consumer Price Index (CPI) rose 2.7 per cent in the year to August, down from 3.5 per cent in July and 3.8 per cent in June. Read more

Economy
UK markets poised for gains after election, global geopolitical risks remain
Chris Iggo, Chief Investment Officer at AXA Investment Managers, has provided an optimistic outlook for UK markets following the recent general election, while cautioning about ongoing global ...Read more