Strategic economic reserves can allow Washington to bolster smaller countries like Australia.
The United States needs a Strategic Shiraz Reserve. China has been using its economic weight to bully middle powers without consequence, and the United States needs to consider radical departures from its usually staid trade policy to support allies in the face of Chinese aggression.
Upset over Australia’s call from early this year for an independent inquiry into the origin of the novel coronavirus, and its policies on Hong Kong and Xinjiang, China has targeted Australian exports with a vengeance. Its measures have hit a range of products, from beef and barley to wine and lobster. If China’s antics continue, their moves could snowball into devastation for the Australian economy after three decades of unprecedented growth, as China buys 34 percent of its total exports.Trending Articles
The White House announced it would be serving Aussie wine at a holiday party, but much more is needed to ensure that the United States has its closest allies’ backs. In a recent New York Times interview, U.S. President-elect Joe Biden said that “the best China strategy … gets every one of our … allies on the same page.” Responding forcefully to Beijing’s bullying one of Washington’s closest allies should be a top priority in the first weeks of a Biden administration.