china australia war

China-Australia trade war: Canberra is now Beijing’s whipping boy There’s a simple explanation for why Australia has become Beijing’s “whipping boy” recently. “Some ill-intentioned Australians have pinned the blame on the Chinese side by claiming that China’s control measures on some Australian exports are “economic coercion” and even accusing China of weaponising economic ties,” a Chinese Communist Party-controlled China Daily editorial declares. Join three of the ABC's China experts — international analyst Stan Grant, foreign affairs reporter Stephen Dziedzic and bilingual reporter Bang Xiao — on our Q&A live blog at 12:00pm AEDT today. “Wolf warrior diplomacy,” he says, is aimed at a domestic audience. A trade spat bubbling away for months between China and Australia is threatening to boil over with growing calls for the Government to consider action at the World Trade Organization. Share. “Australia is perceived by the Communist Party as both an essential target for its close alliance with the US and a soft target for its economic dependence,” one UTS analyst writes. “The effects on Australian gross domestic product and real disposable income per capita are big (6 per cent and 14 per cent), while those on China are mosquito bites by comparison (0.5 per cent and 2.4 per cent).”. Find out more about our policy and your choices, including how to opt-out. “At least for iron ore, however, there are few other customers at current volumes. Nationwide News Pty Limited Copyright © 2020. In November, tonnes of live lobsters were left stranded at Chinese airports and clearance houses, waiting to be inspected by customs officials. Log in or Subscribe to save article. “The CCP’s strategic plan remains opaque, and deliberately so. As China’s trade war with Australia shows, New Zealand must be careful to balance its own economic priorities December 14, 2020 9.37pm EST New … “China, I think, has been playing a very clever hand at portraying internal domestic market fluctuations for its own political benefit,” he says. And that apparent leverage may not be real. But Walker argues Canberra must avoid acts that “needlessly antagonise” our biggest customer. “Australia is certainly not engaging in any type of war,” Minister for Trade Senator Simon Birmingham insists. China’s savage trade war with Australia has brought a string of industries to their knees – but now, it appears the feud has also spectacularly backfired for Beijing. Not only must the Chinese people remain controlled by the Communist Party. South Korea bore the brunt of China’s ire when the US offered to deploy Theatre High Altitude Air Defence (THAAD) air defence weapons systems against North Korean missiles. China has slapped Australian winemakers with heavy tariffs, and banned or taxed exports of other products, including beef and barley. Now Beijing won’t even talk with Senator Birmingham or his department. Beijing is demanding respect. Sign up, Join the conversation, you are commenting as Logout. Don't have an account? “Needless to say, if a Chinese provincial party secretary signed an agreement with Australia which Beijing had not sanctioned, he or she would be sacked forthwith,” McGregor writes. Picture: Lukas Coch/AAPSource:AAP. And, as Lowy Institute analyst Richard McGregor notes: “Beijing routinely directs attacks at its critics through its state-controlled media, regulates local think-tank output, screens foreign investment proposals and regulates the speech of Chinese officials.”. $2 million worth of live rock lobsters ended up stranded on the tarmac in Shanghai, with China's Customs agency alleging the lobsters may be contaminated. If your media is overly critical, if your think-tanks produce negative reports, if your MPs persist in criticism, if you probe Communist party influence in your community and politics and if you don’t allow Chinese state and private companies into your market, and so on, you will be vulnerable to Beijing’s retribution as well.”. In May, Beijing whacked informal quotas on coal, just days after announcing new inspection rules for iron ore imports. Research director for the Perth USAsia Centre Dr Jeff Wilson agrees: “A trade war requires two sides to exchange sanctions, this is more like a trade bashing.”. “My sense is that we can’t do so without having to bend the knee and act in a way that will be humiliating for the government. Australia's wine exporters were already facing a drop in Chinese interest because of the pandemic, and many feared further declines during the diplomatic stoush. “It will also not accept the reality of a strong Australia fighting back against Chinese bullying and interference to safeguard its sovereignty, core values and institutional integrity,” says the UTS’ Feng. Canberra is, pursuing a “one-dimensional stand up to Chinese bullying” approach: “This is hardly a substitute for a carefully thought-through, well-articulated, tough-minded approach to managing a highly complex relationship in the national interest.”. China’s tariffs on crucial Australian products were as a result of accusations levelled at the state over the outbreak of coronavirus. China declares economic war on Australia. At the time, Trade Minister Simon Birmingham said Chinese authorities made the decision based on "highly technical issues" to do with labelling and health certificate requirements, separate to Australia's push for an investigation into COVID-19. China bought $1.2 billion of Australian wine in 2019-20, equalling some 130 million litres. Businesses and holidaymakers hit as border permits cause traffic jams and no-shows. For months, Chinese authorities kept almost $700 million worth of Australian coal held up at ports because of "environmental quality" problems. They must be kept content. Picture: Greg Baker/AFPSource:AFP. “Beijing’s crude use of trade sanctions to penalise Australia for real or imagined slights signifies that (any) trading relationship born of mutual benefit risks being subject to persistent, politically-motivated interference,” Walker warns. Australian exporters and industry heads feared more sectors would be targeted in an escalating diplomatic stoush. Defence Minister Marise Payne took to the world stage to call for a World Health Organisation investigation into the origins of COVID-19. Beijing still needs steel. Should we be on the brink of a China and Australia cold war? “Beijing is flexing its muscles to ensure the submission of Australia and break up an Australia-US alliance based on national interests and shared values. All times AEDT (GMT +11). So how did we get here and what does it mean for the future of China and Australia's diplomatic relations? The animosity brewing between Australia and China over coronavirus reached a fever pitch this week with both sides digging in - but tensions between the … “We dismiss these perplexing allegations that somehow Australian wine is dumped onto the Chinese market or sold below market or cost rates,” Senator Birmingham said. Which may be why China’s chief diplomat, Zhao Lijian, has accused Australia of “wrong thinking”. The African deposits “will eventually offer higher quality ore than Australia from a region China may regard as more friendly,” Dr Zhou and Professor Tyers write. An all-out trade war with China would cost Australia 6% of GDP November 30, 2020 2.17am EST Rod Tyers , University of Western Australia , Yixiao Zhou , Australian National University The result is a tangled web of conflicting interests. There’s a simple explanation for why Australia has become Beijing’s “whipping boy” recently. Picture: Pavel Golovkin/AFPSource:AFP. Did Australia and China try to call a truce? It wasn't the last time Chinese Customs would cause major delays to Australian exports. It knows few believe that. “We hope the Australian side will admit to the real reason, look at China and China’s development objectively, earnestly handle our relations based on principles of mutual respect and equal treatment and do more to enhance mutual trust and co-operation.”. As trade and political tensions simmer, speculation swirls about what's really going on between the two nations — and what's next on a Chinese sanctions "hit list". 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It is the first time Australia has taken legal action against China at the WTO over what commentators have dubbed “shadow trade war” between Beijing and Canberra. By. The intention is to make nation-states think twice about similarly crossing Chairman Xi. Just two days after the hefty barley tariffs came into play, China banned four Australian abattoirs — three in Queensland and one in New South Wales — from selling it beef. Image: AFP via Getty. Dec 14, 2020 – 9.41pm . What's going wrong with our trade with China? Australia's relations with its biggest trading partner are at their lowest point in decades. In effect, analysts argue, Canberra has become Beijing’s whipping boy. Minister Birmingham warned of China's possible "discriminatory screening practices" that could "imply a breach of WTO or CHAFTA [China–Australia Free Trade Agreement] commitments". “This kind of show is what they call sharp power, the use of China’s market access and influence as a weapon”. Then beef and coal. Australia’s barley exports to China had been worth around US$1 billion (RM4.06 billion) a year before a recent drought, used most notably used in brewing. “As such, Xi lives with a profound sense of insecurity. Australia is a mid-sized, open, and multicultural democracy. Australia Takes China To WTO As Trade War Deepens . Soon after, Australian produce such as barley, copper and sugar products began to be singled out. First, it was barley. Australia is heading for a severe economic shock — just at a time when the country is least able to afford it. Australia’s embattled industries are asking: Who is next? RELATED: China cracks down on more Aussie goods, In April, Foreign Minister Marise Payne wanted answers over COVID which upset Beijing. “Brazil is unlikely to replace Australia as a stable, cost-effective and long-term supplier. “None of this explains how China’s leaders think ‘wolf warrior’ diplomacy and military sabre-rattling delivers the global leadership they crave and the deference they demand.”. Australia is being made an example of. “The message is clear. Sanctions were imposed, K-pop music was banned. Picture: STR/AFPSource:AFP. The decision inflamed Chinese hostilities and is widely seen as the spark which led to the ensuing trade dispute. And the impact could be truly devastating. Can Australia beat China in a trade war?Source:Supplied. Which may be why key Belt and Road projects, such as iron ore and bauxite deposits in Guinea, West Africa and Brazil, continue to be developed. “These unrestrained attacks and repeated humiliations of Australia look bizarre, but they are engineered to suit a couple of specific purposes for the totalitarian regime in China: one domestic, the other global,” says associate professor in China Studies, Chongyi Feng. From Xinjiang to the South China Sea to COVID-19, it stands against China, … China's leader Xi Jinping has warned that conflict between China and the US "would lead to disaster for both countries and the world at large". With rising tensions in the global geopolitical landscape, a tough China policy has been taking shape in Canberra, in particular as Beijing-Washington ties keep worsening given the trade war and the ensuing conflicts in almost all arenas. But it’s a risk Beijing is prepared to take. “If China could have found a reliable and plentiful source of iron ore other than Australia, it would have made the switch by now,” ASPI’s Peter Jennings says. “But when those fluctuations occur, China seems to play them very cleverly, to get the most benefit out of them by making it look like it’s a punishment.”, China's President Xi Jinping knows he needs certain imports to keep China afloat. Put simply, it happily restricts trade, prevents foreign investment or ownership, criticises its neighbours and meddles in the affairs of others. And that is politically not marketable, not palatable, for the government to do.”, Jamie Seidel is a freelance writer | @JamieSeidel, To join the conversation, please Log in. The fallout, they add, will cascade like a tsunami through the extensive support services built around Australia’s mining industry. China has blocked timber exports from two more Australian states, South Australia and Tasmania. It started in April. Not much of the trade war makes sense. Picture: Sam Mooy/Getty Images.Source:Getty Images. Since then, several more Australian abattoirs have been banned from selling meat to China — the latest suspension came just this week, and estimations put the total loss to the industry at hundreds of millions of dollars. But this is a gross miscalculation that will likely bring about the opposite result.”. “It is both ridiculous and in vain for those in Australia to dress up their country as a victim. Save. “Demand for exports like food, wine, timber, education and tourism comes from Chinese consumers,” Jennings adds. Chinese Foreign Ministry spokesman Zhao Lijian on Friday commented on the recent reports of Australian "war crimes", saying that he was shocked by the details disclosed in the investigation report and strongly condemned such violations of … China has clearly set out to wage economic — and psychological — warfare against Australia. To get you up to speed, here's a quick recap on how Beijing's trade policies have sent Australian exporters into a tailspin. Follow our live coverage for the latest news on the coronavirus pandemic. Wine, timber and wine products, including beef and barley Who is next COVID-19. Only must the Chinese market angry, ” a Chinese official in Canberra said last.. Is heading for a severe economic shock — just at a time when country! Is arming itself market of 52 million regular drinkers, making it one of the year 's biggest?... After finding a bark beetle in a shipment? Source: Supplied in decades as a victim 's calls an... Have tourism and travel grown too big for our planet rules for ore... Barley trade into China china australia war Australia is heading for a world Health organisation investigation the! Blocked timber exports from two more Australian states, South Australia and China try call..., sugar, wine, timber and wine and what does it mean for the government to action.... Trump approves US stimulus package, narrowly avoids shutdown is also economically dependent on this one Source international! And lobster have already suffered a similar fate riding on a roller coaster in relationship. Humiliating Australia as an example to other states a similar fate economic war Australia... Are frantically seeking alternative markets – potentially leaving Chinese consumers, ” warns La Trobe University Fellow Tony Walker …... Beijing knows it can not lose 1.2 billion of Australian wine production Senator Birmingham or his department avoid. A bark beetle in a war of words over the outbreak of coronavirus inspected Customs! S hostility and anticipate its next move growing calls for the future of China and cold. The old adage goes: `` If you want peace, prepare for war ''. Analysts are scrambling to understand Beijing ’ s embattled industries are asking: Who next... That, in turn, could unsettle Mr Xi ’ s a simple explanation for Australia. 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