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China-Australia relations
This Week in AsiaPolitics

Is China using its clash with Australia as a warning to the world?

  • Beijing’s use of trade as political payback against Canberra is seen as showing the consequences of opposing China’s interests
  • But observers say that while Australia should not back down from its core interests, it can tone down its rhetoric and choose dialogue with Beijing

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Australian Prime Minister Scott Morrison has vowed not to compromise on his country’s values or national interests, insisting policy would never be made at the “behest of any other nation”. Photo: Reuters
John Power
Until recently, Australia was a poster child for the mutual benefits of trade between China and liberal democracies, despite the two countries’ myriad differences. These days, it stands out as a cautionary tale of the high price of getting on the wrong side of Beijing.
The downward spiral of Sino-Australian relations has drawn global attention to China’s willingness to use trade as a political weapon, galvanising calls for international cooperation to counter Beijing and prompting questions in Australia and beyond about how to best handle relations with the rising superpower.
Beijing has slapped restrictions on billions of dollars of exports in more than a dozen key Australian industries – including barley, beef, coal, copper, timber, and wine – since Canberra in April proposed an independent international inquiry into the origins of the Covid-19 pandemic.
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Last month, it released a dossier outlining 14 grievances that had “poisoned” relations – including the call for an inquiry, “antagonistic” media reports about China, and Canberra’s statements of concern about Hong Kong and Xinjiang – cementing widespread assumptions that Beijing was engaging in political retaliation.

Australia, a close ally of the United States, sends about 40 per cent of its exports to China, with two-way trade in 2019-2020 worth about A$240 billion (US$177 billion).

07:55

Australia ditched diplomacy for ‘adversarial approach’ to China and ‘a pat on the head’ from US

Australia ditched diplomacy for ‘adversarial approach’ to China and ‘a pat on the head’ from US
While leaving the door open for dialogue and expressing hope for constructive ties, Australian Prime Minister Scott Morrison has vowed not to compromise on his country’s values or national interests, insisting policy would never be made at the “behest of any other nation”.
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