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Home / Business

Australia facing 'diplomatic deep freeze' from China

news.com.au
1 Mar, 2018 06:50 AM4 mins to read

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The news isn't great for Chinese-Australian relations. Photo / News Corp Austrlaia

The news isn't great for Chinese-Australian relations. Photo / News Corp Austrlaia

China is really not happy with Australia right now.

The rising superpower is putting off visits between ministers, has deferred a trip by their highest-ranking diplomat, and is delaying a range of educational exchanges, in what The Australian has described as a "diplomatic deep freeze".

Government sources confirmed to the newspaper the Chinese government is stalling on a range of visits as a way for Beijing to take a political stand against Australia.

At the same time, China's state media taking a direct stand against Australia. Yesterday the state-run Global Times newspaper described Australia's behaviour in recent years as "baffling" and "repugnant".

The editorial accused us of being an "anti-China pioneer in the last two years", warning that Canberra "cannot afford worsening ties with China".

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The scathing article was a response to Prime Minister Malcolm Turnbull's vow to crack down on foreign interference in Australian affairs, as well as its position on the South China Sea.

Australia's position on the South China Sea

Australia has always advocated for freedom of navigation in international waters in the South China Sea, but it has always been careful never to get too close.

While meeting with Prime Minister Malcolm Turnbull in Washington, United States President Donald Trump warned that China was "tough" and "getting stronger", saying the US needed to step up its efforts against Beijing.

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When asked if the US would consider joint freedom-of-navigation exercises with Australia, Trump said: "We would love to have Australia involved and I think Australia wants us to stay involved."

But Turnbull gave a vague response when subsequently pressed on joint naval exercises with the US, saying: "Australia, as you know, defends the right of freedom of navigation and overflight throughout the world but we do not want to speculate on operational matters."

A protester, wearing boat-shaped paper hat, displays a placard during a rally at the Chinese Consulate to protest China's alleged continued militarisation of the disputed islands in the South China Sea. Photo / AP
A protester, wearing boat-shaped paper hat, displays a placard during a rally at the Chinese Consulate to protest China's alleged continued militarisation of the disputed islands in the South China Sea. Photo / AP

At the same time, Foreign Minister Julie Bishop reaffirmed that Australia supports freedom of the seas. "We have been traversing the South China Sea for many years in accordance with international law and we will continue to do that," she said at a Canberra press conference.

"Australia is an upholder and defender of the international rules-based order. We believe strongly in the principle of freedom of navigation and freedom of overflight, and we will continue to traverse the South China Sea as we have in the past."

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Beijing, of course, did not look favourably on this reaffirmation, and continues to criticise Australia's position on the disputed waters.

Yesterday, China's state media warned Australia's position will "exert long-term negative effects on Sino-Australian ties".

Foreign interference laws

In June last year, a Four Corners investigation by the ABC and Fairfax aired an episode on "how China's Communist Party is secretly infiltrating Australia".

It sparked a mass investigation into the issue of Chinese influence in Australia, headlined by the scandal surrounding then-Labor Senator Sam Dastyari.

The Turnbull government introduced its biggest overhaul of intelligence laws in decades to quell international interference.

Beijing did not react well to this.

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The Chinese embassy in Canberra issued a statement "categorically rejecting" the allegations, saying Beijing "has no intention to interfere in Australia's internal affairs or exert influence on its political process through political donations".

Over the months following, Chinese officials have urged Australia to "abandon its prejudice towards China and perceive China and the China-Australia relationship objectively."

They accused the Australian media of racism and fearmongering, describing the reporting as "irresponsible" and "full of bias".

Malcolm Turnbull recently met Donald Trump in Washington. Photo / News Corp Australia
Malcolm Turnbull recently met Donald Trump in Washington. Photo / News Corp Australia

Beijing brings the war to universities

Last week, China's embassy in Canberra issued a new safety warning after what it claimed was a surge in "insulting incidents" directed at Chinese students living in Australia, according to The Australian.

It followed a similar warning last year, in which the embassy posted a message to its website warning of "a rising number of insulting incidents" and urged students to report any safety problems.

According to the Australian Bureau of Statistics, education exports in 2017 were worth A$30.9 billion ($33.1b), and over 30 per cent of this revenue comes from Chinese students.

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Universities account for over two-thirds of Australia's total export revenue from education.

The move by China's embassy could thus have severe economic consequences for Australia.

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