Dr Anne-Marie Schleich
Since April 2020, Australia and China have been embroiled in escalating trade and diplomatic disputes. The relationship between the two countries has constantly deteriorated and is currently at a critical point. Developments on both sides could be right out of a filmscript on “how to wreck bilateral trade and diplomatic relations”.
The seesawing conflict started in 2018, when Australia barred Huawei from providing 5G network services to Australia because of security concerns. In February 2020, the Australian Dumping Commission initiated and also continued anti-dumping duties on various Chinese steel and aluminium products. And in April 2020, Australia pushed for an international inquiry into the origins of Coronavirus and gathered substantial support among other WHO member countries. It was a move which the Chinese Deputy Ambassador to Canberra termed “shocking”. China retaliated in May and the following months with import suspensions and import delays of Australian beef, barley, cotton, thermal coal, timber, copper, beer and lobster on the basis of ‘health or consumer protection issues’ or of ‘quota restrictions’. It also imposed higher tariffs on many other Australian goods such as wines and issued Australia travel warnings for Chinese tourists and students.
In May, the Australian government decided to continue imposing anti-dumping duties on Chinese imports. In turn, Australia introduced stricter rules for foreign investments in sensitive assets in June. It also suspended in July its extradition treaty with Hongkong in response to China’s introduction of security legislation in Hongkong. In December, Australian Prime Minister Morrison directly responded to an image on the Chinese Foreign Affairs spokesman twitter account depicting a (likely) fake image of an Australian soldier holding a knife to an Afghan child. PM Morrison demanded an apology from China which never came.
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