Policy can deal with these consequences, through adjustment aid, and through education, but unless that is done, the negative fallout from this competition will likely continue. The last time I heard this degree of anxiety was in Asia during the Asian crisis, when many of China’s neighbors expressed the same concerns.
Thus, we have seen them expanding directly into overseas markets in transport, packaging, building supplies, shopping malls, property services, etc., mainly activities that cannot be serviced via exports, but require direct investment. I think this trend is to be applauded, and is a sign of the success of Australian business rather than its inadequacy.