China Suspends Economic Accord With Australia

China on Thursday suspended an economic agreement with
Australia, worsening an already-troubled relationship fractured by
spats over the Covid-19 pandemic and human rights abuses.

Tensions between the two sides have soared after Canberra called
for an independent probe into the origins of the coronavirus
pandemic and banned telecoms giant Huawei from building Australia’s
5G network.

China — Australia’s biggest trading partner — has already
imposed tariffs on more than a dozen key industries, including
wine, barley, and coal, decimating exports.

In the latest volley, the China-Australia Strategic Economic
Dialogue was pulled “based on the current attitude” of the
Australian government, China’s National Development and Reform
Commission said in a statement Thursday, blaming some officials of
a “Cold War mindset” and “ideological discrimination”.

Beijing will “indefinitely suspend all activities under the
framework” of the agreement, the statement added.

Australia called the decision “disappointing”, with Trade
Minister Dan Tehan saying the dialogue had provided an important
forum for the two countries, but adding no such talks had taken
place since 2017.

The Australian dollar sank 0.6 percent soon after the news.

Canberra has previously described the accord — designed to boost
trade between both sides and introduce large Chinese investors — as
one of the “premier bilateral economic meetings with China”.

The first meeting in 2014 was called a chance for “closer
economic ties” by Canberra.

But relations between the two have sunk into the deep
freeze.

“It’s mainly a symbolic move but still, the trend that it points
to… discussion and dialogue being suspended at lower and lower
levels, is a real concern,” said James Laurenceson, director of the
Australia-China Relations Institute at University of Technology
Sydney.

“Overall, what we’re seeing in Canberra and Beijing is both
sides doubling down and hardening their stance,” he said.

Last month, Prime Minister Scott Morrison’s government scrapped
a Belt and Road deal between Beijing and the state of Victoria.

Chinese President Xi Jinping’s signature Belt and Road
Initiative is a vast, trillion-dollar plan for a network of
investments and infrastructure across Asia and the world.

Beijing reacted with anger to the Victoria state announcement,
warning that taking the axe to the deal would cause “serious harm”
to relations.

But critics have claimed the stand-off between the two sides is
cover for Beijing to create geopolitical and financial
leverage.

This week Australia added to the row by saying a Chinese
company’s controversial 99-year-lease on Darwin Port was also under
review and could be scrapped.

Darwin is the most important port on Australia’s north coast,
the closest to Asia and a base for US Marines who rotate in and out
of the country.

Defence minister Peter Dutton told the Sydney Morning Herald his
department had been asked to “come back with some advice” about the
2015 deal and refused to rule out forcing Chinese firm Landbridge
to divest on national security grounds.

The deal — brokered by local authorities in Australia’s Northern
Territory — had raised serious concern in Canberra and Washington,
where it was seen as a strategic liability.

It was not immediately clear if the row would impact on a free
trade agreement between China and Australia that came into effect
in 2015.

AFP

China on Thursday suspended an economic agreement with
Australia, worsening an already-troubled relationship fractured by
spats over the Covid-19 pandemic and human rights abuses.

Tensions between the two sides have soared after Canberra called
for an independent probe into the origins of the coronavirus
pandemic and banned telecoms giant Huawei from building Australia’s
5G network.

China — Australia’s biggest trading partner — has already
imposed tariffs on more than a dozen key industries, including
wine, barley, and coal, decimating exports.

In the latest volley, the China-Australia Strategic Economic
Dialogue was pulled “based on the current attitude” of the
Australian government, China’s National Development and Reform
Commission said in a statement Thursday, blaming some officials of
a “Cold War mindset” and “ideological discrimination”.

Beijing will “indefinitely suspend all activities under the
framework” of the agreement, the statement added.

Australia called the decision “disappointing”, with Trade
Minister Dan Tehan saying the dialogue had provided an important
forum for the two countries, but adding no such talks had taken
place since 2017.

The Australian dollar sank 0.6 percent soon after the news.

Canberra has previously described the accord — designed to boost
trade between both sides and introduce large Chinese investors — as
one of the “premier bilateral economic meetings with China”.

The first meeting in 2014 was called a chance for “closer
economic ties” by Canberra.

But relations between the two have sunk into the deep
freeze.

“It’s mainly a symbolic move but still, the trend that it points
to… discussion and dialogue being suspended at lower and lower
levels, is a real concern,” said James Laurenceson, director of the
Australia-China Relations Institute at University of Technology
Sydney.

“Overall, what we’re seeing in Canberra and Beijing is both
sides doubling down and hardening their stance,” he said.

Last month, Prime Minister Scott Morrison’s government scrapped
a Belt and Road deal between Beijing and the state of Victoria.

Chinese President Xi Jinping’s signature Belt and Road
Initiative is a vast, trillion-dollar plan for a network of
investments and infrastructure across Asia and the world.

Beijing reacted with anger to the Victoria state announcement,
warning that taking the axe to the deal would cause “serious harm”
to relations.

But critics have claimed the stand-off between the two sides is
cover for Beijing to create geopolitical and financial
leverage.

This week Australia added to the row by saying a Chinese
company’s controversial 99-year-lease on Darwin Port was also under
review and could be scrapped.

Darwin is the most important port on Australia’s north coast,
the closest to Asia and a base for US Marines who rotate in and out
of the country.

Defence minister Peter Dutton told the Sydney Morning Herald his
department had been asked to “come back with some advice” about the
2015 deal and refused to rule out forcing Chinese firm Landbridge
to divest on national security grounds.

The deal — brokered by local authorities in Australia’s Northern
Territory — had raised serious concern in Canberra and Washington,
where it was seen as a strategic liability.

It was not immediately clear if the row would impact on a free
trade agreement between China and Australia that came into effect
in 2015.

AFP