For the first time, Beijing is doing a similar reversal with a major economic partner. The bilateral mechanism that has managed the China-Australia economic dialogue so far is in place and working. Backlash for the actions of a partner which, however, has been heading in a direction that China has not shared for a year and a half. First, Canberra requested to investigate the origin of the Coronavirus, and finally Huawei’s 5G network was rejected. A turning point aimed at exacerbating Australia’s position, whose main partner is China. The Australian dollar immediately lost 0.6%.
Counter-move to the Reform Commission
The NDRC (National Development and Reform Commission), the armed arm of the Communist Party of Economic Planning, has for the first time adopted an extremist measure against an important axis – the abolition of the China-Australia Strategic Economic Dialogue, the bilateral dialogue that was activated in 2014 -, which catalyzed the move with the ‘discriminatory’ position Ideologically “to Australia.
As you know, Canberra was the first to cancel two Victoria State memoranda under the BRI (Belt and Road Initiative) program, while the agreement to assign a Chinese company to Darwin Port for 99 years on standby, also for national defense reasons. The agreement, brokered by local authorities in the Australian Northern Territory, immediately raised suspicions, also due to the presence of US naval bases.
Defense Secretary Peter Dutton admitted that his department had been asked to “review some advice” for the 2015 agreement, without ruling out the premise regarding duty to withdraw from the Chinese company, Landbridge, to divest investment on national security grounds.
Beijing has already imposed surprise tariffs
Australia said it was “disappointed” with China’s decision, but reiterated its willingness to continue talks with Beijing.