Doing Business with China:
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An Ongoing Dispute Chloe Poole
he outbreak of COVID-19, diplomatic disputes, economic coercion and trade restrictions continue to characterise the growing tensions in Australia’s relationship with China. Amidst the shaky political climate, the feud has created new laws, restrictions and perspectives for both nations. What has been emphasised amidst this climate is Australia’s perseverance in decision-making, reasonable exercise of sovereign powers and protection of its people. This article will discuss the ongoing feud between Australia and China which has highlighted Australia’s resilience. How Did the Tensions Arise? Following the establishment of a diplomatic relationship with the People’s Republic of China in 1972, the Australian embassy in Beijing was constructed. Upon the foundations of mutual interests, economic exchange and strong trade complementarities, the bilateral relationship between Australia and China was formed. Fast forward to the current complex strategic partnership, China has quickly become Australia’s largest two-trading partner in goods and services worldwide. Although the 22 | The Brief
bilateral relationship has yielded beneficial outcomes for both nations, it has come to a halt owing to the disagreement between nations. Following the outbreak of COVID-19 around the globe, Australian Prime Minister Scott Morrison proposed a thorough investigation into the origins of the pandemic. Defying China, Morrison pursued the inquisition labelling it as an entirely reasonable and sensible course of action. China then responded to Australia’s conduct by introducing an 80% tariff on Australia’s imports from China. Consistent with the deteriorating bilateral relationship, in August of 2019, Australian Treasurer Josh Frydenberg declared that a proposed $600 million acquisition with a Chinese company was contrary to national interests. Adding further to the withering relationship, renowned Australian-Chinese journalist Cheng Lei was detained in China under unknown circumstances, fuelling the growing political pressure. Why Isn’t Australia Enforcing Its Own Trade Restrictions? If Australia were to establish trade restrictions against China, a large portion of global support would decrease. Ed.1 2021
