The global economy has taken a huge hit as the world’s major economies shut down activity in turn to fight the spread of COVID-19. The GDP of China, Australia’s largest trading partner, dropped 6.8 per cent in the first quarter this year. Its total trade fell 6.4 per cent (exports 11.4 and imports 0.7 per cent). In that period, Japan’s gross domestic product dropped 3.4 per cent and the United States' fell 4.8 per cent. The crisis hit China first and hard.

In the same period, Australia's exports to China grew by 4.3 per cent on a year ago, twice as fast as our total exports. China’s share in Australia’s trade rose to 35.8 per cent, despite a 12.8 per cent drop in Australian imports from China. Exports of beef were up 30.3 per cent. China has cushioned the initial economic shock of the COVID-19 crisis on our economy. Earnings from Chinese tourism and international students dived, of course, a consequence of the Australian government’s policies to protect against spread of COVID-19.