Global Impact newsletter: Australia’s political risks from provoking the dragon that is China

Global Impact is a fortnightly curated newsletter featuring a news topic originating in China with a significant macro impact for our newsreaders around the world

In this third edition we will explore how national sensitivity over the origin of the coronavirus pandemic has led to an escalating war of words and sanctions between China and Australia.

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China confirmed a tariff of 80.5 per cent on Australia’s barley exports in May following the conclusion of its anti-dumping investigations. Photo: Bloomberg

Published: 2:00pm, 13 Jul 2020Updated: 3:51pm, 6 Nov 2020

Global politics is delicate business in the best of times, but more so in the midst of a deadly pandemic that has claimed well over 500,000 lives. And, as Australia has learned in the last several months, the politics surrounding the coronavirus pandemic are almost as dangerous as the disease.

The Australian government proposed in April that there be an international investigation into the origins of the coronavirus. After all, figuring out how the virus came to be is an important part of preventing future outbreaks.

But that investigation would have to start with China, where the virus was first detected, and the Canberra government badly underestimated how Beijing would react.

China, fearful that it would be blamed for starting the pandemic after it had already been accused of covering up the initial outbreak, responded by imposing a series of sanctions on Australia in May. The controversy is especially fraught for Australia, given a third of its exports go to China.

This started a rapid deterioration in relations between the two nations. Fast forward to late June and the war of words and deeds intensified, with each accusing the other of espionage.

The situation underscores how China can use access to its huge domestic market to influence important global political discussions and the risks countries take when they deal with Beijing on sensitive issues like the coronavirus.