https://www.afr.com/politics/federal/you-will-pay-beijing-ups-threat-to-australia-20201106-p56c1u Phillip CooreyPolitical editor Nov 6, 2020 – 2.10pm Beijing has accused Australia of behaving like America's roughneck and threatened to inflict even more pain on the economy unless actions it says are anti-Chinese stop. "Australia will pay tremendously for its misjudgment,'' a searing editorial in the state-sanctioned China Daily has warned. "With Australia mired in its worst recession in decades, it should steer clear of Washington's brinkmanship with China before it is too late. "To put it simply, if Canberra continues to go out of its way to be inimical to China, its choosing sides will be a decision Australia will come to regret as its economy will only suffer further pain as China will have no choice but to look elsewhere if the respect necessary for cooperation is not forthcoming." The threats come as bipartisanship over how to deal with China has frayed with Labor slamming the government for mishandling the relationship. "We're seven years down the path of this government and there's not a single personal relationship with substance that exists between anybody in this government and anyone in the Chinese government,'' said deputy Labor leader Richard Marles. "I mean, that is a situation which is completely hopeless." Already, hundreds of Australian exporters are bracing to see if China implements a ban on more than $6 billion in commodities on Friday after state-controlled media acknowledged the existence of a list of seven items that could be turned away from Chinese ports and airports. The China Daily threatened more was to come. It said Scott Morrison's approach to China of "strategic patience and consistency", as outlined in a recent interview with The Australian Financial Review, was inconsistent "with his government's rash participation in the US administration's attempts to contain China". It claims Canberra has undermined the relationship by "fueling anti-China sentiment at home, baselessly sanctioning Chinese companies and aggressively sending warships to China's doorsteps". These are references to foreign investment applications blocked by the government, and Australia sailing ships in international waters that Beijing illegally claims as Chinese territory. "If this is Canberra's "strategic patience", how will it act in a fit of pique? "Canberra should realise it will get nothing from Washington in return for its collusion in its schemes, while Australia will pay tremendously for its misjudgment." It claims its threats to block lobster imports, for example, are based on legitimate customs concerns and are not "economic coercion" or "retribution" for such acts as banning Huawei from the 5G contract or implementing foreign interference laws, as is widely believed in Australia. It claims the hold up of shipments of lobster was motivated by concerns that imported seafood has been a source of coronavirus outbreaks in China. This is despite China being the original source of the virus. "Unlike Washington, Beijing is not offering Canberra an either-or choice, but just reminding it to maintain its diplomatic independence and follow the norms of international relations. To be an ally of the US does not necessarily mean it has to be a roughneck in its gang,'' it said. Mr Marles said "there are obviously difficulties and complexities in the relationship with China, which is exactly why you need personal relationships to add ballast to the situation". "But right now, they can't speak to a single person in China. There are hundreds of thousands of jobs at stake. And really, I think people in those jobs would be looking to our government today and saying, what are you going to do about this?" Trade Minister Simon Birmingham siad it was "disappointing'' that China continued to refuse to engage. "In terms of contact from Chinese ministers or with Chinese ministers and Australian ministers, the ball is very much in China's court. The Australian government stands willing to have that type of mature, responsible dialogue and we would welcome that being reciprocated by our counterparts,'' he said.
Imo, China play a game, they promise to be a predominant customer of goods. Once a company or industry gear up the production line, China then pulls pin. Should company then suffer financially, China through a back door (Singapore or other offshore entities) will attempt to buy out the company on the cheap. Big lesson to everyone about whom you wish to trust. The volatility shakes out weak players and smart money steps in, sound familiar?
well, live with it. That's some thing the west can't do. Chinese are willing to eat grass to support their government.
Yes figuratively and literally..... Hong Kong: People invited to snitch on their neighbours Published 22 hours ago People can submit video, audio and images to the hotline Police in Hong Kong have launched a hotline where residents can report breaches of the national security law imposed by Beijing earlier this year. The law criminalises secession, subversion and collusion with foreign forces. It has silenced many protesters since it came into force. Hong Kong residents can send images, audio and video files to the hotline. Rights groups say they are concerned the service could be used to target those with opposing political views. Hong Kong's police department said on Facebook that the hotline allows people to report "national security" issues without sharing their personal details. Residents can submit the information via the messaging app WeChat, email or text. The hotline does not answer calls or provide a response, police said, adding that authorities would not collect any personal information of those who report breaches of the law. More..... https://www.bbc.com/news/world-asia-china-54822783
China will try every trick in the book to drive a wedge between Australia and USA. Australian business is slow to learn and slow to move. The UK as well is a huge market for NZ & Aust. due to Brexit.
China's trade threats hit Australia with 'psychological warfare' By Eryk Bagshaw and Darren Gray November 6, 2020 — 6.00pm https://www.smh.com.au/world/asia/c...th-psychological-warfare-20201105-p56bz6.html Australian exporters to China are angry with the Morrison government's handling of the trade relationship between the two economies, accusing the government of abandoning them as Beijing's trade tactics and propaganda show the first signs of significant political impact. Local wine exporters say they are being told they can not ship to China and barley is being rejected by Chinese importers. Australian timber, copper, and coal are also facing restrictions and tonnes of live lobster has died on the tarmac at a Shanghai airport. The fallout from verbal directives by Chinese customs agents to stop importing seven Australian products from Friday has rattled markets and forced other exporters to keep their stock in Australia to avoid being rejected by Chinese authorities. WA barley has been banned for import by Chinese customs. WA barley has been banned for import by Chinese customs.Credit:Bloomberg The Commonwealth Bank estimates the verbal instructions, which have been repeated by Chinese state media but not the Chinese government, now threaten to cover more than $27 billion of Australia's exports to China if they were applied across entire industries. The Chinese government has also urged students and tourists to travel elsewhere, leaving Australia facing a $45 billion hit - 10 per cent of Australia's annual exports - as the economy attempts to recover from the coronavirus without the support of its largest trading partner. Related Article A man sits in front of a wine shop tht sells Australian wines in eastern Beijing’s Tongzhou district. China relations Australian exporters to China face $6 billion 'D-Day' The Australian government has joined other countries in condemning the Chinese Communist Party's actions in Hong Kong, Xinjiang and the South China Sea. But it drew the specific ire of the Chinese government in April for first lobbying for an independent inquiry into the coronavirus and banning telecommunications giant Huawei from the 5G network in 2018 over national security concerns. Perth USAsia centre trade expert Jeffrey Wilson said China's campaign was "an act of psychological warfare". "The whole objective is to create fear and paranoia about exporters," Dr Wilson said. "You can wind up the entire industry and get them to do that political screaming on your behalf." WA Labor Premier Mark McGowan called on the Morrison government to rethink its position on China on Friday after China's Acting Consul-General Jin Qian told The West Australian that WA should sign up to Beijing's $1.5 trillion Belt and Road infrastructure initiative and begin a "new direction of co-operation". The envoy's intervention, aimed at driving a wedge between state leaders, business and the federal government, was backed up by the China Daily, the Chinese Communist Party's international propaganda arm on Friday. The state media outlet said in an editorial that Australia would "suffer further pain" for fuelling anti-China sentiment at home, sanctioning Chinese companies, sending warships to China's doorsteps in the South China Sea and colluding with Washington. "Australia will pay tremendously for its misjudgment," it said. Fruit and wheat farmers are also watching Chinese markets closely after further reports of imminent trade restrictions at Shanghai markets being implemented on Friday. There are growing concerns the particular industries targeted could be used to make up some of China's quotas under the US-China trade deal signed by US President Donald Trump to ease tensions after an 18-month trade war. "We have to remember trade is a zero sum game, buying from one country will detract purchases from another country ‑ without a lift in demand," said Commonwealth Bank economist Belinda Allen. "As a result, we could be seeing substitution from Australia to US for certain products." Premium Grain director John Orr said he was "appalled and really bloody angry" at the federal government for not fixing the relationship. Mr Orr said barley shipments to China had been blocked and it was the only post-COVID growth market for his product, leaving the business potentially un-viable. "The impact of that is going to destroy thousands of livelihoods and push our economy further into recession," he said. "The whole economy will suffer from their incompetence." Department of Agriculture negotiators urged Australian farmers to diversify into other markets on Thursday in crisis meetings with industry. "They tell us to diversify, but is the only growth market at the moment," said Mr Orr. China and Taiwan are the only two major economies in the world forecast to grow this year. Republicans react to Trump's election fraud claims "There are real issues all over the world that the Australian government does not agree with but there are ways of articulating our views that does not result in a Cold War," he said. "It's not acceptable for the Prime Minister to say they are not targeting us. That is just him it playing down." Trade Minister Simon Birmingham, who was due to meet with business leaders at a members-only virtual event at the Australia-China Business Council on Friday, said he had been assured by Chinese authorities that the trade bans were rumours. "It would indeed reflect poorly, given the assurances that have been made, were these issues not to be satisfactorily resolved so that the trade between our peoples and between our businesses can continue to be facilitated for the benefit of all," he said. Rod Micallef, owner of Zonzo Estate has been exporting wine to China since 2017, and its latest shipment was due to depart today. But that plan hit a hurdle on Wed, during an inspection by the shipping company. Rod Micallef, owner of Zonzo Estate has been exporting wine to China since 2017, and its latest shipment was due to depart today. But that plan hit a hurdle on Wed, during an inspection by the shipping company. Credit:Jason South Victorian Yarra Valley winery owner Rod Micallef’s latest cargo of wine awaiting shipment to China was blocked on Wednesday after it was told it would not make it in time for the November 6 deadline. Three shipping company workers had come to assess $140,000 of Zonzo Estate’s Cabernet and Shiraz as it sat on 12 pallets. Mr Micallef, the owner of Zonzo, had witnessed these inspections many times, having exported about 30 China-bound shipments since 2017. He has invested more than $1.5 million developing his business in China. "When they came for their inspection they were all positive and happy... however about 20 minutes in they got a phone call and it pretty much all changed from there," he said. "They weren’t willing to take the product because they said it might have to come back." Related Article Some Australian wine exporters have been notified by Chinese importers that Australian wine will not be cleared through Chinese customs from this Friday onwards.. What You Said 'We surrender or walk away': Readers respond to new trade concerns from China Labor's trade spokeswoman Madeleine King said the government did not have a plan to resolve the situation. Labor has to date largely held a bipartisan view on Australia's foreign policy on China. "You have to start to build this relationship back up," she said. "Because it took decades to build and we need to reinvigorate it, and we need to start today." Dr Wilson said the rising political pressure showed China's coercive tactics were working. He said he expected China to continuing targeting individual shipments while allowing broader trade to continue, particularly in resources, which make up the bulk of Australia's more than $100 billion in exports to China each year. He estimated the actual impact of the disruption to be $5 billion but the political impact to be larger as concerns over each shipment get magnified by industry and politics, and exporters hold back stock fearing they will lose it. "We have already changed our behaviour," he said. "There is a situation developing here in which we are sanctioning ourselves." Defence Minister Linda Reynolds on Thursday alluded to the tactics as a threat to the Indo-Pacific without naming China. "In this grey zone influence becomes interference, economic cooperation becomes coercion and investment becomes entrapment," she said at an Australian Strategic Policy Institute and Konrad-Adenauer Stiftung foundation event.
Australia's economy depends on exports. It has gotten tremendously rich by exporting to China. But Trump has arm wrestled the Aussie government to toe the line with him, on the basis of various strategic and diplomatic agreements. Morrison could and can't really do much about it other than work with the US on this. Clearly China is upset that Australia is siding with its startegic partner instead of its sugar daddy. With Biden in power the tension should ease and Canberra will smooth things over with China. This is a reminder that economic and political interests don't always meet but the intertwined interests keep countries from taking more aggressive measures to the detriment of all.