One of the most dominant themes running through the ASX last year was Australia’s deteriorating relationship with China. The issues started as a diplomatic spat between the Australian government and the Communist Party of China (CCP) regarding the origins of the coronavirus pandemic. Tensions have since spilled over into the share market in a dramatic fashion.
Just ask shareholders of Treasury Wine Estates Ltd (ASX: TWE). Treasury shares had one of their worst years ever last year, as the CCP imposed import restrictions on Australian wine entering China. Treasury shares were at $17.70 in January last year. They closed the year at $9.40.
Australia’s “China problem”
Part of the problem is that China views Australia as a…