Swimming spat to soured deals put chill on China-Aussie Ties
Relations between the two matters: China is Australia’s largest trading partner, while for China, investment Down Under potentially provides it a more secure supply of land, water and commodities
Normally able to navigate tensions caused by criticism of China for its territorial assertiveness in the South China Sea, a spat involving Olympic swimmers and a scuppered bid for Australia’s electricity grid have cast a more palpable chill over the relationship.
For both countries, that potentially matters. China is Australia’s largest trading partner, and was a key engine its decade-long mining boom, taking a large chunk of Australia’s resource exports. For China, investment in Australia potentially provides it a more secure supply of land, water and commodities.
On Thursday, Australia rejected bids for electricity network Ausgrid from Hong Kong billionaire Li Ka-shing and State Grid Corp of China.
Treasurer Scott Morrison said it would be contrary to national security to allow the offers to proceed in their current form.
It’s another sign that protectionism is on the rise in Australia, where Morrison earlier this year blocked the sale of the nation’s largest cattle rancher to a Chinese-led group.
By associating potential Chinese investment with security threats, Australia could risk ramifications to a relationship that has endured on the economic side despite political ups and downs. China’s rise as a regional power could also complicate ties given Australia is a key US ally in Asia.