How an Australian identity crisis may be fuelling recent tensions with China

The cause of the downward spiral in relations may not be Australian politicians’ unwise choices and China’s forceful reaction, but deeper structural forces at play in Australian society, particularly its cultural, political and economic ties to the US

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A visitor looks at a display of Australian wines at an expo in Shanghai on November 5, 2020. China has raised import taxes on Australian wine, stepping up pressure on Australia over disputes including its support for a probe into the origins of the coronavirus. Photo: AP

Published: 9:15am, 10 Feb 2021Updated: 9:31am, 10 Feb 2021

Tension between Australia and China has been growing despite record bilateral trade. Two events stand out: Australia taking the lead in boycotting Huawei and its call for an international inquiry into the origins of Covid-19.

Regardless of Australia’s conviction on those issues, it would have made more strategic sense for it to be a follower than a leader. Principled or impetuous, Australian leaders should have known the implications of their stance, yet they acted against the country’s national interests.

The wounded pride on both sides will be difficult to repair. Australian Prime Minister Scott Morrison’s recent overture of dialogue with China was promptly rebuffed – with good reason. While he said Australia was “committed to engaging with China”, this statement was preceded by highlighting Australia’s participation in the Quadrilateral Security Dialogue and the Five Eyes intelligence alliance.

From a marketing perspective, Morrison’s speech could not have been more successful – if its purpose was to further alienate rather than seek rapprochement. It also provided proof that Australia would not be heeding the presumptuous advice of New Zealand Trade Minister Damien O’ Connor, who had just signed a free-trade agreement upgrade with China when he said Canberra should “follow us and show respect”.

In any case, China knows its own game too well and is looking for concrete policy turns, not empty words. Beijing is watching to see how eager Australia is to be part of the potential upgrading of the Quad.

Australia has many complementary interests and few inherent conflicts with China compared with Beijing’s great power rivalry with the US or historic animosity with Japan. And Australia is too distant geographically and self-sufficient in resources to be geopolitically threatened. So why does it have such a bad relationship with China?

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