China Ratchets Up The Pressure As Australia Stands Firm On Its Sovereign Interests

As China continues to slap tariffs and other restrictions on a growing number of commodities and other products from Australia, the country’s Prime Minister Scott Morrison admitted that they’re facing an “extraordinary period of time in the relationship” between the two nations.

“There are obviously tensions there. But those tensions aren’t resolved by Australia surrendering its sovereignty,” Morrison said in an interview with Nine Network television on Thursday. “People are aware of the issues that have been raised.”

Morrison was responding to a question over recent trade tensions with China that resulted in more than 50 coal-bearing cargo ships sitting stranded in Chinese waters. The ships are said to be carrying more than $500 million worth of Australian coal.

The stranding of the ships marks a new low in Sino-Australian relations that have deteriorated rapidly since late April, when Morrison called for an independent investigation into the origins of the coronavirus pandemic, but China swiftly rejected the suggestion.  

A few weeks later, China slapped an 80% tariff on imports of Australian barley and then placed new restrictions on imports of Australian beef. Since then, the list of commodities and foodstuffs caught up in the dispute has grown rapidly. On Friday, China announced that it would impose anti-dumping duties of more than 100% on Australian wine.

Australia counts China as its biggest trading partner, a relationship worth AUD$252 billion ($185 billion) in 2019, the Australian Department of Foreign Affairs and Trade says. That figure had risen 17.3% over 2018 and it made up 27.4% of Australia’s exports.

China’s apparent ban on Australian coal has pushed prices to historic lows, British commodity consultancy Argus says. Australia is a major world supplier of coal, gas, minerals and foods. China still depends on Australian iron ore for its steel industry, the firm says.

Morrison is probably signaling this week an “intention to be patient,” says Stuart Orr, professor of management at Deakin University in Australia. China can hold off the coal ships now because their chief buyers, Chinese steel producers, don’t need much of the supply now given a slump in exports and a decline in domestic construction work. “The reduced demand for steel in China for domestic and export purposes would be a strong motivation for not accepting these deliveries,” Orr says.

Earlier this week, China called on Morrison’s government to “correct their mistakes” through action. “The root cause of the deteriorating bilateral ties is Australia’s repeated wrong acts and remarks on issues concerning China’s core interests and major concerns as well as its provocative and confrontational actions,” the Chinese Embassy in Canberra said in a statement on Monday.

The Chinese embassy also recently shared a list with Australian media that lays out 14 reasons behind the two countries deteriorating relationship. Beijing’s grievances are said to include foreign investment restrictions, unfriendly media coverage, Huawei’s exclusion from Australia’s 5G network, as well as wanton interference on Taiwan, Hong Kong and Xinjiang.

“Those 14 points go to the way that Australia makes its own laws in its own interests,” Morrison said during a press conference also on Thursday. Morrison said, “I mean, these are fundamental sovereign interests of Australia,” he added.

Speak Your Mind

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Get in Touch

350FansLike
100FollowersFollow
281FollowersFollow
150FollowersFollow

Recommend for You

Oh hi there 👋
It’s nice to meet you.

Subscribe and receive our weekly newsletter packed with awesome articles that really matters to you!

We don’t spam! Read our privacy policy for more info.

You might also like

Indian Producers Avoid Theatrical Releases, Big Ticket Movies Sooryavanshi...

MANCHESTER, ENGLAND - JUNE 16: Bollywood actor Ranveer Singh...

Texas Shatters Record For New Coronavirus Cases

TOPLINE Texas reported over 2,500 new coronavirus cases Wednesday—the highest reported in a single...

Stocks Cut Losses After Gilead Says Remdesivir Coronavirus Treatment...

TOPLINE The stock market opened slightly higher on Friday, reversing earlier losses, after positive...

5 Things That Covid-19 Has Changed Forever

It's as if everything you learned about business has been turned upside down. In...