{"id":57453,"date":"2020-07-10T17:23:28","date_gmt":"2020-07-10T07:23:28","guid":{"rendered":"https:\/\/www.aspistrategist.ru\/?p=57453"},"modified":"2020-07-10T17:23:28","modified_gmt":"2020-07-10T07:23:28","slug":"deficit-blows-out-in-chinas-trust-account-with-the-world","status":"publish","type":"post","link":"https:\/\/www.aspistrategist.ru\/deficit-blows-out-in-chinas-trust-account-with-the-world\/","title":{"rendered":"Deficit blows out in China\u2019s trust account with the world"},"content":{"rendered":"
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The biggest driver of Australia\u2019s 2020 defence strategic update<\/a> is the waning of Canberra\u2019s trust in the decision-makers in Beijing. A secondary driver is the recognition that how the US uses its power will not always align with our interests. Both mean Australia must do more for its own security and prosperity in the poorer, more dangerous and more disorderly world<\/a> Prime Minister Scott Morrison has described.<\/p>\n

Trust gives governments, companies and populations the ability to form partnerships, enter contracts and rely on others in times of crisis\u2014public health crises like the pandemic or security crises like conflicts and war. Trust between governments enables trust in contractual agreements between companies. Active distrust\u2014or worse, government intervention over the top of contractual arrangements\u2014is corrosive to business confidence and investment.<\/p>\n

As the world faces the health and economic tragedy of the coronavirus pandemic, trust is in decreasing supply and increasing demand. As discussed in my podcast interview with The Strategist<\/em> editor Brendan Nicholson, trust is appreciating in value globally.<\/p>\n