China has announced that it has indefinitely suspended the China-Australia Strategic Economic Dialogue, marking the second instance of Beijing closing an avenue for diplomacy since its spat with Canberra first escalated last year at the onset of the coronavirus pandemic. China has already frozen high-level ministerial dialogue between the two countries.
China’s National Reform and Development Commission accused Australia of taking a “series of measures to disrupt normal exchanges and cooperation” and said that Australia had adopted a “Cold War mindset” and engaged in “ideological discrimination”.
The latest move is in response to the Morrison administration’s decision to ban the state of Victoria from proceeding in its Belt and Road Initiative (BRI) project with Beijing. A new law in Australia now allows the federal government to overrule any agreements reached between state agreements and foreign governments and entities. Australia is also reportedly considering scrapping the lease of the Darwin Port to a Chinese company due to mounting security concerns.
When Australia first annulled the BRI agreement between Victoria and China last month, Chinese state-owned news outlet Global Times called it an “unreasonable provocation”. Likewise, a spokesperson for the Chinese Embassy in Canberra said, “It further shows that the Australian government has no sincerity in improving China-Australia relations. It is bound to bring further damage to bilateral relations and will only end up hurting itself.” Furthermore, the foreign ministry warned at the time that it would “respond firmly and forcefully” to the Morrison administration’s decision.
Australian Trade Minister Dan Tehan has responded by saying, “The Strategic Economic Dialogue, which was last held in 2017, is an important forum for Australia and China to work through issues relevant to our economic partnership.” He added, “We remain open to holding the dialogue and engaging at the ministerial level.”
Experts say, however, that China’s latest move is an “act of pure symbolism” and has “zero substantive effect”. Jeffrey Wilson, an analyst from the Perth USAsia Centre told ABC News: “The Strategic Economic Dialogue has been in abeyance for nearly four years; not to mention the fact that official interactions across the board have been wholly suspended by the Chinese side since April 2020.”
Over the past year or so, the Morrison administration has called for international investigations into China’s complicity in the coronavirus pandemic, described Beijing’s territorial claims in the South China Sea (SCS) as having “no legal basis”, criticised the new security legislation in Hong Kong and the treatment of Uighur Muslims in Xinjiang province, elevated Australia’s relationship with India from a Strategic Partnership to a Comprehensive Strategic Partnership (CSP), deepened engagements with the Quad, signed a defence pact with Japan, joined US warships in an attempt to steer Chinese vessels out of Malaysia’s Exclusive Economic Zone (EEZ), and banned Huawei from the country’s 5G network.
More recently, this past week, Australia was invited to join the G7 summit in London alongside fellow non-member states India, South Korea, and South Africa. Following the summit, the G7 released a joint statement pledging to work towards “maintaining a free and open Indo-Pacific which is inclusive and based on the rule of law, democratic values, territorial integrity, transparency, the protection of human rights and fundamental freedoms, and the peaceful resolution of disputes.” The statement also specifically called on China to “participate constructively in the rules-based international system.” It also urged China to “respect human rights and fundamental freedoms”, expressing concerns over human rights violations in Xinjiang and the undermining of democracy in Hong Kong. Furthermore, in somewhat of a nod to Australia, the G7 members also encouraged China to abandon its “arbitrary, coercive economic policies and practices.”
As expected, Chinese foreign ministry spokesperson Wang Wenbin said that the G7 had made “groundless accusations” that represent the “wanton destruction of the norms of international relations.” He added, “They should not criticise and interfere in other countries with a high-and-mighty attitude, undermining the current top priority of international anti-pandemic cooperation.”
Australian Minister for Foreign Affairs Marise Payne also met with her Indian and French counterparts, S Jaishankar, and Jean-Yves Le Drian, on the sidelines of the summit, and released their own joint statement that reaffirms their commitment to achieving a free, open, inclusive and rules-based Indo-Pacific. They further “reaffirmed their support for the rule of law, freedom of navigation and overflight, peaceful resolution of disputes, democratic values, and respect for sovereignty and territorial integrity.” In an apparent dig at China, the trio also “shared mutual concerns regarding the strategic, security, economic and environmental challenges in the Indo-Pacific region.”
In addition, China has also been concerned by Australian officials hints at warfare over the Taiwan crisis. These concerns have only been amplified by the fact that Taiwan has said that it is preparing for a “final assault” by China and welcomed Australia’s assistance in this regard.
Against this backdrop, it is hardly surprising that China has placed strict trade restrictions and even temporary bans on a number of Australian exports, including copper, wine, beef, barley, timber, lobster, coal, dairy, sugar, wool, fruit, and oatmeal. Jeffrey Wilson says that given that China has essentially exhausted the trade restrictions it can impose on Australia, the suspension of the China-Australia Strategic Economic Dialogue is perhaps indicative of the fact that Beijing has “run out of ammunition.” He said, “China has placed sanctions against practically all major Australian exporters that it can, bilateral investment has collapsed, and intergovernmental discussions are non-existent,” adding, “By going thermonuclear in 2020, China now has no substantive forms of leverage over Australia, and has to resort to largely meaningless acts of symbolism.”
China Suspends Strategic Economic Dialogue With Australia, Rejects its “Cold War Mindset”
China accused Australia of taking a “series of measures to disrupt normal exchanges and cooperation” and of engaging in “ideological discrimination”.
May 7, 2021
IMAGE SOURCE: FENG LI / GETTY IMAGESChina has also been concerned by Australian officials hints at warfare over the Taiwan crisis.