OpinionPunishing Australia through trade also comes at a price for China

Beijing’s approach of selectively picking battles risks backfiring on China’s own economy

If being met with hostility is a potential side effect of closer ties with China, it could impede Beijing’s ability to cultivate relationships with regional trade partners

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By taking a such a hard line on trade issues with Australia, does China risk alienating regional trade partners? Photo: Getty Images

Published: 6:00am, 22 Dec 2020Updated: 6:00am, 22 Dec 2020

China’s decision to punish Australia through trade is the result of both feelings and calculations. Beijing is angry at Canberra and is implementing a plan to inflict pain – making a case to the world that those who dare to offend China will pay the price.

But Beijing’s approach of selectively picking battles is costly for China, as well.

China has cited anti-dumping probes and strict quarantines as legitimate reasons to restrict Australian imports, but few people are blind to the bigger picture of Beijing’s hostility towards Canberra – although it’s another issue of debate over whether Canberra has really asked for it.

Beijing’s trade measures targeting Australia, therefore, could be seen as China using its trade power through its huge domestic market as a weapon to serve political purposes. This perception will not help Beijing’s effort to be viewed as a believer in, and supporter of, free trade, nor advance its goal of joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, a regional 11-member trade deal in which Australia is a member.

It could also undermine China’s own efforts in seeking closer trade and economic ties with regional trade partners. After all, who would want to cultivate a closer relationship when it could be used as a tool of punishment in the future?