CHINA INDEFINITELY SUSPENDS ECONOMIC EXCHANGE WITH AUSTRALIA

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China
Source : New York times

 China has indefinitely discontinued key economical exchange with Australia. This adds fuel to the fire-growing diplomatic gap between these countries.

Relations have been on the deterioration since Australia called for an inquiry into the origins of the virus. And when it banned Huawei from developing its 5G network.

Last year, China imposed permits on Australian goods like wine and beef.

In a statement on Thursday, a Chinese government commission indicted Australia of possessing a Cold War mindset.

Recently, some Australian Commonwealth Government officials undertook a series of measures to disrupt the formal exchanges and cooperation between China and Australia out of the Cold War mindset and ideological discrimination. This, China’s National Development and Reform Commission contended.

Reacting to the conclusion, Australian Trade Minister Dan Tehan said it was disappointing. However, added that Canberra was still open to conversations.

Canberra has formerly described the China-Australia Strategic Economic Dialogue. It was said as the exclusive bilateral economic meeting with China.

Previously, China had already informally ceased communication between the two countries on a ministerial level.

James Laurenceson who is the Director of the Australia-China Relations Institute cited. Due to Beijing’s conduct, it lengthened that diplomatic freeze.

Up until now, both Canberra and Beijing have been telling that the lower level day-to-day nitty-gritty resumes as normal. And now we’re noticing co-operation and dialogues even nigher to that are being disturbed, he told.

Strained trade ties- Australia China

China
Source : New York Times

The latest statues come against a backdrop of heightened diplomatic tensions between Australia and China.

Trade ties have been extremely strained since Australia first called for a strict investigation. Australia wanted to know the origins of the Covid-19 pandemic in April.

In response, China has put tariffs or trading restrictions on Australian products such as barley, wine, beef, and lobster. In some cases, the taxes of wine have been more than 200%.

This crack has also affected the coal. More than 24 coal ships stranded off China’s coast incapable to unload their cargo due to the tariff.

This has resulted in alarm in Australia as China is its biggest trading partner. This accounts for close to 40% of exports.

Nevertheless, Australia’s trade balance with China smashes a six-month high in December. China’s need for Australian iron ore made up for constraints on other products.

The move seemed to be the latest in a string of tit-for-tat measures between both nations.

Mr. Laurenceson said Beijing appears to be reacting directly to the Australian government’s cancellation of two deals.  The state of Victoria blew with China as part of its flagship Belt and Road Program.

If this is the degree of resentment, then Canberra will be pretty ridden because it strikes me as being quite calibrated. We’re a long way here from rescinding from something like ChAFTA (the China-Australia free trade agreement ), he said.

The Australian government has also reportedly looked for new security advice over the port of Darwin. This has been leased to Chinese-owned company Landbridge, with some media platforms implying that the company could be forced to rid of on nationwide security grounds.

Until now China has mostly communicated its displeasure through trade measures.  This has affected a dozen key Australian industries, including wine, barley, and coal.

China is Australia’s biggest trading partner, accounting for 29 percent of Australia’s trade with the world in 2019, according to the Department of Foreign Affairs and Trade.

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Chinese interest in Australia fell 61% in 2020, the worst number in six years. According to the Australian National University’s Chinese Investment in Australia Database.

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