Analysis by the World Economic Organisation: 'Indefinite suspension' sounds alarm bells in Australia

The National Development and Reform Commission (NDRC) of China has announced that based on the current attitude of the Australian federal government towards China-Australia cooperation, it has decided to suspend indefinitely all activities under the China-Australia Strategic Economic Dialogue mechanism jointly led by the NDRC and relevant departments of the Australian federal government with immediate effect. This is not only a necessary and justified response to safeguard our national interests, but also a wake-up call to the wrong-headed Australian federal government, which must bear all the responsibility for the deterioration of China-Australia relations.

Since the formal establishment of diplomatic relations between China and Australia in December 1972, the two sides have carried out mutually beneficial cooperation in various fields, bringing tangible benefits to the two countries and two peoples. As China's economy soared, Australia jumped on the Chinese bandwagon and enjoyed positive economic growth for nearly three decades before the COVID-19 outbreak. For 11 years in a row, China has been Australia's largest trading partner and export destination, the largest source of Australia's trade surplus, and the largest market for iron ore, natural gas, coal, agricultural and animal husbandry products. Before the outbreak, China was Australia's largest source of international tourists and students, and the biggest pillar of Australia's tourism service industry and education industry. Even after the outbreak, Australia's exports to China remained high. In 2020, Australia's total exports to China reached A $145.2 billion, down only 2.16 percent from 2019 and accounting for more than a third of its total exports.

However, in recent years, Australia has shifted from taking no sides to tying itself firmly to the anti-China chariot of the United States, and has become the "vanguard" in cooperation with the United States to contain China. (Canberra put the comprehensive strategic partnership of mutual benefit in the two countries, abuse of the so-called "national security" reasons, sino-australian trade and economic cooperation, cultural cooperation projects and both results to restrict and suppress, even reckless to malicious damage relations between the two countries, china-australia relations are "free fall".

Since mid-2017, Australia has been making waves and setting off an anti-China frenzy. First, they used the media to slander China and the Chinese people in Australia, manipulated the "imperial" think tank to spread rumors and smear China, and then enacted several anti-China bills at the federal government level. In 2018, Australia became the first country to ban Huawei from building its 5G network on "national security" grounds. The Australian government has repeatedly vetoed more than a dozen investment and merger projects by Chinese companies through discriminatory review policies, citing absurd and unsubstantiated claims of "threat to national security", causing huge losses to Chinese companies. In March and June 2020, Australia successively amended its Foreign Investment Law to substantially strengthen the so-called "national security review" on foreign investment, totally violating the relevant commitments under the China-Australia Free Trade Agreement. Australia has launched over 100 anti-dumping and countervailing investigations against Chinese products. On April 21, 2021, the Australian Federal Government boldly announced to tear up the "One Belt And One Road" agreement signed by Victoria and China. Australia became the first country in the world to unilaterally tear up the "One Belt And One Road" agreement, which set a bad precedent. On May 2nd the Morrison government asked the Australian Defence Department to review the 99-year lease of Australia's Darwin port by China's Landbridge Group. On May 5, politicians such as Labor MP John Kitchin led calls for the Morrison government to cancel the strategic cooperation agreement that Western Australia signed with China in 2011.

What's more, Australia blatant violation of international relations basic rules, often in hong kong-related, xinjiang, Taiwan and other problems concerning China's core interests to take the wrong words and deeds, many times in the UN human rights council and other occasions about xinjiang lead or participate in joint action against China, national security legislation actively intervene in Hong Kong, to Taiwan tried to squeeze into the world health assembly platform, etc. Australia has also engaged in political manipulation on the epidemic issue and led the call for an "independent international review", which has seriously interfered with international cooperation on epidemic prevention and control. Some people in Australia have vilified and accused China of "interference and infiltration" in Australia, politicized, stigmatized and imposed unwarranted restrictions on normal exchanges and cooperation between the two countries, including the arbitrary search of Chinese media journalists in Australia. These actions grossly interfere in China's internal affairs, gravely hurt the feelings of the Chinese people, severely damaged mutual trust between the two countries and poisoned the atmosphere of bilateral relations.

Instead of introspection, anti-China politicians in Australia blame China for the deterioration of China-Australia relations, saying that "Australia should not be held responsible" for the current difficulties in China-Australia relations and accusing China of "economic coercion". This is a cynical attempt to make a harrowing row in spite of facts. Recently, some Australian officials even shouted that "the drums of war have been beating", which shows that the Australian government is unrepentant and is going further and further down the road of anti-China. On the one hand, the anti-China forces in Australia hope to board the express train of China and benefit China economically. On the other hand, it adheres to the Cold War mentality, demonizes China and kidnaps its citizens' interests for this reason. There is no such good thing! These politicians have taken a series of actions that have poisoned bilateral relations, serving the US 'China-containment and anti-China strategic intention, but at the cost of their own actual interests.

The main reason for the current increase in trade between China and Australia is the surge in iron ore prices on the international market. Trade officials in Australia estimate that total trade between the two countries could plummet by as much as 40 percent in the future. The Australian dollar fell as low as 0.6 per cent to US $0.7701 after the indefinite suspension of the strategic economic dialogue was officially announced. The Australian stock market also suffered, with the S&P/ASX200 down 0.8%. Market participants believe the Australian dollar could fall further if China follows up with more curbs. Sean Callow, a strategist at Westpac, said any official announcement of further curbs on economic co-operation with Australia would be negative for Australia's export outlook and for the Australian dollar. Mr Clifton, Australia's former trade commissioner to China, also emphasised: "China will remain the main engine of global growth over the next decade and unless Australia and China can repair their broken relationship, the potential for Australia to benefit from China's growth will be threatened." Macao public policy economist Alan in Australian finance commentary newspaper said, China is an important impetus to the development of world economy, even cutting must Australia and China, it's hard to find other alternative to China's market, especially after the outbreak, if Australia's lack of China's market, capital, personnel and technological exchanges, Australia's economy is hardly on track.

Despite the clamor of anti-China forces in Australia, many visionary people, including former Australian Prime Minister Kevin Rudd and mining magnate David Frost, have criticized the current government's immature foreign policy and lack of independence, calling for a return to rationality and mending the relationship with China as soon as possible. Senior lecturer at the university of Sydney Australia Chinese contemporary history, David brock Philippines recently published in the Sydney morning herald website titled "australians do not want to war with China, it's time to put forward objection", calling for australians should flatly refused to accept a handful of politicians wrong speech, action, Get Australia off the wrong track of conflict with China.

Mr Allen stressed that Australia should be aware of its responsibility for the breakdown in relations with China and should consult with China on economic and trade issues on an equal footing. Talking to China, he said, did not mean Australia lost its sovereignty. On the contrary, it only showed that the two sides respected each other and viewed each other as friends rather than enemies.

The Australian government should abandon the Cold War mentality and ideological bias and view China's development and China-Australia cooperation in an objective way. It should immediately return to reason, correct mistakes and change its course. It should stop its crazy efforts to suppress China-Australia cooperation, stop politicizing and stigmatizing normal exchanges between countries and stop going further down the wrong path. If the Australian government persists in choosing confrontation, it will have to bear the consequences.