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MELBOURNE, Australia – Former Australian treasurer Peter Costello, who now heads the country’s giant Future Fund, is wary of U.S.-China relations, and the broader impact the two superpowers trade dispute is having.

“It’s not just the U.S. and China, the Australia-China relationship is very strained at the moment. It’s been strained by a number of issues and that has made investment between Australia and China much more difficult, and it puts a lot of obstacles in the way,” Australia’s longest-serving treasurer said Wednesday.

“That has already had its effect on Australia and what would be even worse would be if all of this leads to a downturn in the Chinese economy. That would have a significant effect on our export industries form Australia.”

Australia’s exports to China comprise 30% of the total, mainly in commodities, particularly iron ore. Tourism from Chinese visitors and the education sector are also major beneficiaries of Chinese spending,

Costello said globally, as far as the stock exchanges are concerned, people have priced in a trade deal being done between the United States and China. If that doesn’t happened he says a significant sell-off in shares could result.

The former treasurer under Prime Minister John Howard, is also chairman of Nine Entertainment, which owns and operates the Nine television network, and the former Fairfax newspapers group, and is the controlling shareholder in Macquarie Media.

(File photo).

MELBOURNE, Australia – Former Australian treasurer Peter Costello, who now heads the country’s giant Future Fund, is wary of U.S.-China relations, and the broader impact the two superpowers trade dispute is having.

“It’s not just the U.S. and China, the Australia-China relationship is very strained at the moment. It’s been strained by a number of issues and that has made investment between Australia and China much more difficult, and it puts a lot of obstacles in the way,” Australia’s longest-serving treasurer said Wednesday.

“That has already had its effect on Australia and what would be even worse would be if all of this leads to a downturn in the Chinese economy. That would have a significant effect on our export industries form Australia.”

Australia’s exports to China comprise 30% of the total, mainly in commodities, particularly iron ore. Tourism from Chinese visitors and the education sector are also major beneficiaries of Chinese spending,

Costello said globally, as far as the stock exchanges are concerned, people have priced in a trade deal being done between the United States and China. If that doesn’t happened he says a significant sell-off in shares could result.

The former treasurer under Prime Minister John Howard, is also chairman of Nine Entertainment, which owns and operates the Nine television network, and the former Fairfax newspapers group, and is the controlling shareholder in Macquarie Media.

(File photo).