relationship
Each week China Matters collates news items about the Australia-China relationship
Media Roundup Issue 112 (09/03/19 – 15/03/19)
1. Can China once again rescue Australia at its hour of greatest need?
9/03/2019 John Beveridge Small Caps
It is no secret that following the global financial crisis it was China’s dramatic stimulus measures – along with some of our own – that rescued Australia’s economy and kept it growing when many other economies around the world went straight into recession.
[…]
Fortunately for the lucky country, China is once again bringing in a new stimulus plan, even though it is more targeted and smaller than the one it introduced after the GFC.
China has now lowered its goal for economic growth to 6-6.5% for 2019 and is still grappling with a debt legacy and the trade stand-off with the US.
However, it has also announced a big stimulus plan with a cut of 3% to the top bracket of value added tax (VAT), which will boost the manufacturing sector.
Read more: https://smallcaps.com.au/can-china-once-again-rescue-australia/
2. New Chinese laws aimed at foreign ‘discrimination’
11/03/19 Glenda Korporaal The Australian
Australian companies face Chinese retaliation under new foreign investment laws set to be passed by the National People’s Congress on Friday.
China, which will be able to retaliate against countries that discriminate against Chinese firms, such as the decision by the federal government to ban Chinese telecommunications giant Huawei from supplying equipment for the next- generation 5G networks, says the laws are aimed at encouraging more foreign
China Matters Media Roundup Issue 112 (09/03/19 - 15/03/19)
relationship
Each week China Matters collates news items about the Australia-China relationship
investment in China by putting foreign companies on the same footing as domestic companies in many areas.
While there will still be a “negative list” of sensitive areas off limits to foreign investors, Chinese officials say the new law is designed to give foreign companies a level playing field with local companies when investing and operating in China. The new law will also explicitly ban government officials from using administrative means to force foreign companies to transfer their technology to Chinese companies.
Read more (Paywall): https://www.theaustralian.com.au/business/new-chinese- laws-aimed-at-foreign-discrimination/news- story/6940fb3bc85c467c6214dc82f8ecffa3
3. China trying to influence US, Australia: Trump advisor Bolton
11/03/19 SBS News
US President Donald Trump's national security adviser, John Bolton, says China's attempts to use think tanks and non-profit organisations to influence opinion in the US and Australia "is far greater in magnitude than any other foreign effort we have seen in history".
Mr Bolton also offered blunt assessments on China's island and military base building in the South China Sea and raised concerns "Manchurian" chips in Huawei technology could be activated for espionage.
Mr Bolton, in a US TV interview on Sunday, said China's efforts to influence opinion in America via Confucius Centres and other ways trumped Russia's election hacking.
"It really is far greater in magnitude than any other foreign effort we have seen in history to influence American opinion and it's not just confined to the United States," Mr Bolton told Fox News' Maria Bartiromo.
Read more: https://www.sbs.com.au/news/china-trying-to-influence-us-australia- trump-adviser-bolton
4. China’s growing Latin America ties also matter for Australia
China Matters Media Roundup Issue 112 (09/03/19 - 15/03/19)
relationship
Each week China Matters collates news items about the Australia-China relationship
12/03/19 Erin Watson-Lynn The Interpreter
When China’s increasing links to Latin America are discussed, Australia might not be the first country that comes to mind. But for Australian policy makers, Beijing’s push into Latin America matters. Australia must do more itself to strengthen its otherwise nascent relationships with the region, especially as China works to fill the vacuum left by the United States’ absence in the region.
Two important developments make this need clear.
It is wrong to assume that Australia is irrelevant when it comes to developments between China and Latin America more broadly. Already there are two geostrategic initiatives that link the two regions via Australia.
On the east coast of Australia, is the proposed 24,000-kilometer Asia-Latin America Trans-Pacific Cable stretching from Chile to China. Huawei funded the prefeasibility study and included three possible route options.
Read more: https://www.lowyinstitute.org/the-interpreter/china-s-growing-latin- america-ties-also-matter-australia
5. Andrew Robb blames Turnbull and Joyce for ‘toxic’ relationship with China
12/03/19 Amy Remeikis The Guardian
The former trade minister Andrew Robb, who took an $880,000 job with a Chinese company as soon as he left parliament, has blasted his former party room colleagues and Australia’s security agencies for creating a “toxic” relationship with China.
Robb confirmed he had left Landbridge, which holds the lease over the Darwin port, late last year, after a health precinct project he had been working on was rejected by Beijing.
Speaking to the ABC, Robb said he blamed his former parliamentary colleagues, particularly Barnaby Joyce and Malcolm Turnbull, for souring relations between
China Matters Media Roundup Issue 112 (09/03/19 - 15/03/19)
relationship
Each week China Matters collates news items about the Australia-China relationship
the two nations, and said Australia’s security agencies needed to prove its claims China was a threat.
Robb said the Landbridge CEO had been told “in no uncertain terms by the senior officials that unfortunately the relationship between Australia and China had become so toxic that his [the health precinct proposal] would be put in the bin”.
Read more: https://www.theguardian.com/australia-news/2019/mar/12/andrew- robb-blames-turnbull-and-joyce-for-toxic-relationship-with-china
6. Trade tensions risk Australia’s place in China beef market says new report
12/03/19 Vernon Graham Queensland Country Life
China has eclipsed the United States as the world's biggest beef importer but Australia is barely treading water in the market while some of our biggest rivals are kicking major goals.
That's the view of Wangaratta-based meat broker, trader and consultant, Simon Quilty, who said China had officially taken the US's crown last August as the world's dominant player in the international beef trade.
"We think that is unlikely to change," he said. "Ten years ago the first question every meat trader asked when they walked into the office was 'what is the US market doing today'?" he said. Now they were asking the same question about China.
He said China was now setting the world market for the lean end of the trade. More bull and cow beef which once would have been shipped to the US for hamburger mince was now being sent to China as value-added boneless cuts.
Read more: https://www.queenslandcountrylife.com.au/story/5949988/china- now-mr-big-of-beef-imports/?cs=4707
7. Why Canberra must reset its relationship with China
12/03/19
China Matters Media Roundup Issue 112 (09/03/19 - 15/03/19)
relationship
Each week China Matters collates news items about the Australia-China relationship
Troy Bramston The Australian
When Gough Whitlam’s delegation arrived in Beijing just before midnight on July 3, 1971, it was the high point in a journey of “political adventure,” says Stephen FitzGerald.
He was one of seven members of the opposition delegation and would be appointed Australia’s first ambassador to China after diplomatic relations were re-established on December 21, 1972.
Few people understand China better than FitzGerald, who has worked as a diplomat, academic and business adviser. Ahead of the next federal election, he despairs that neither the Coalition nor Labor has articulated a detailed, reasoned and creative policy for managing relations with China, especially given our economy largely depends on it.
[…]
The Australia-China relationship is at a watershed and its future form is uncertain. Later this month, the China Matters think tank will launch the next-to- final draft of Australia’s New China Narrative, which could be a useful starting point for developing a more comprehensive, coherent and constructive policy towards China. FitzGerald, who is on the board of China Matters, hopes so.
Read more (Paywall): https://www.theaustralian.com.au/opinion/columnists/troy-bramston/why- canberra-must-reset-its-relationship-with-china/news- story/ab9403cb437c2f53b68ca760609908c8
8. How and why did the Northern Territory lease the Darwin port to China, and at what risk?
12/03/19 Christopher Walsh ABC News
Southern contestants on Millionaire Hot Seat don't typically get questions about Darwin correct.
China Matters Media Roundup Issue 112 (09/03/19 - 15/03/19)
relationship
Each week China Matters collates news items about the Australia-China relationship
Their knowledge of the Northern Territory is limited to crocs, fishing and oppressive heat.
And so it was in June 2017, when then-federal treasurer Scott Morrison stumbled late into the office of the NT News, the Territory's paper of record, while a Millionaire Hot Seat question flashed on the screen in the biggest television in the office.
It was far too difficult for $500, but Mr Morrison knew the answer all too well.
The answer was Darwin.
Read more: https://www.abc.net.au/news/2019-03-12/why-did-northern- territory-sell-darwin-port-to-china-what-risk/10755720
9. Trump will create early tests for a new Labor government
12/03/19 Geoff Raby [Associate of China Matters] Australian Financial Review
In a few months, Labor is likely to take charge of Australia's foreign policy and security. It will be doing so with a global order vastly different from that which existed last time it held power. It is important, then, to consider how prepared is Labor for the task.
Senator Penny Wong is likely to be foreign minister and seems to relish the opportunity. She has been preparing for the role for some time. As the first Asian-born female cabinet minister and foreign minister, she will attract a lot of attention across the Asia-Pacific region. She is cool, methodical and analytical. All valuable qualities in a foreign minister.
She will not be given to the rhetorical flourishes and strident language of Julie Bishop. She understands that in diplomacy words matter and need to be carefully weighed. She is ambitious and will not be nearly so invisible as our current Foreign Minister. Between Bishop and Marise Paine, Australia seems to have gone from one extreme to another.
Read more (Paywall): https://www.afr.com/news/economy/trump-will-create- early-tests-for-a-new-labor-government-20190312-h1carm
China Matters Media Roundup Issue 112 (09/03/19 - 15/03/19)
relationship
Each week China Matters collates news items about the Australia-China relationship
10. Cyber-security need not tear countries apart
13/03/2019 Jocelyn Chey [Associate of China Matters] John Menadue – Pearls and Irritations
Telecommunications company Huawei legal action against the US Government’s ban on their involvement in 5G roll-out is a counter attack on claims that their involvement would impact national security. Exaggerated fears about cyber threat are part of a US campaign to contain China, and form the background to this week’s warning to the UK Government by former Prime Minister Malcolm Turnbull. Cyber security is a concern to all national governments, but, rather than put up barriers, more can and should be done to develop protocols and agreements for international cooperation in this area, and in this China, Australia and South East Asian countries could take the lead.
It is no exaggeration to say that 5G technology will revolutionise life as it brings faster internet speeds and allows machines to communicate directly with each other. Countries that plan to introduce 5G first need to build the infrastructure and are now looking for the best options in terms of quality, cost and security. Companies that can provide networks to required standards will not only bring in the standards and specifications with which they are familiar but also will have the advantage of trialling and extending new technologies. Huawei is very competitive in this respect, compared with older-established European firms such as Ericsson and Nokia. (Samsung is working hard on 5G research but surprisingly there are no US companies directly competing for backbone equipment.)
Read more: https://johnmenadue.com/jocelyn-chey-cyber-security-need-not- tear-countries-apart/
11. Australia ‘missing out’ as students continue to shun learning Chinese
13/03/19 Nick Baker SBS News
More than 1.2 million Australians are of Chinese ancestry and the country is our largest trading partner, but very few young people are choosing to study the language.
China Matters Media Roundup Issue 112 (09/03/19 - 15/03/19)
relationship
Each week China Matters collates news items about the Australia-China relationship
The Australia-China Relations Institute held a discussion at the University of Technology Sydney this week on why school enrolments in the language continue to be "persistently low" - especially among non-Chinese background students.
Director of the Institute and former NSW Premier Bob Carr told the audience one "challenging statistic" was only 380 non-Chinese background students nationally are studying Chinese through high school.
"That's a worry when you consider China buys one-third of our exports. We need to understand this country ... We need to have our own level of expertise on China," he said on Monday.
Read more: https://www.sbs.com.au/news/australia-missing-out-as-students- continue-to-shun-learning-chinese
12. No guarantee Trump trade deal won’t hurt Australian exporters: US envoy
13/03/19 Andrew Tillet Australian Financial Review
The USA's newly-appointed ambassador to Australia hopes that the interests of allies can be accommodated in any trade peace deal between America and China but concedes the details will ultimately be up to President Donald Trump.
Arthur B. Culvahouse also attacked China's 'pay day lending' to impoverished Pacific nations and signalled it was unlikely the Australian government would be pressed to pay for the basing of US troops in Darwin, as Mr Trump has demanded of other allies.
Mr Culvahouse, a long-time adviser to Republican Party figures including Ronald Reagan and Mr Trump, has taken up his posting in Canberra this week, after a 2½ year absence of a permanent US envoy.
Mr Culvahouse was the lawyer who oversaw the vetting process to select Mike Pence as Mr Trump's running mate but said accepting his appointment as ambassador would be the "capstone" of his career.
China Matters Media Roundup Issue 112 (09/03/19 - 15/03/19)
relationship
Each week China Matters collates news items about the Australia-China relationship
Read more (Paywall): https://www.afr.com/news/politics/no-guarantee-trump- trade-war-deal-wont-hurt-australian-exporters-us-envoy-20190313-h1cbhe
13. How open should Australia be about the China challenge?
13/03/19 Sam Roggeveen The Interpreter
Former trade minister Andrew Robb made news yesterday when he criticised former prime minister Malcolm Turnbull and his deputy, Barnaby Joyce, for the “toxic” state of Australia’s relations with China.
It’s just the latest skirmish in a heated and occasionally quite hostile debate in Australia about China’s true intentions as a major power, and about whether Australia is hurting its future prosperity by hyping the “China threat”.
It can be hard for Australians to really appreciate how febrile our China debate is right now. Last week my colleague Richard McGregor was part of a panel session on China at the Adelaide Writers’ Festival – apparently, 600 people showed up. Can you imagine that happening anywhere else in the world right now?
Robb’s comments about the Australian intelligence agencies also deserve attention:
“We see a lot of nose touching by the security people — if you only knew what I know, you’d be horrified ... Well tell us. Let us know. I was in the National Security Committee and I’ve gotta say I didn’t learn much more than I was reading in the papers for three years.”
Read more: https://www.lowyinstitute.org/the-interpreter/how-open-should- australia-be-about-china-challenge
14. China ban boon for Australia
13/03/2019 Zac Relph The West Australian
China Matters Media Roundup Issue 112 (09/03/19 - 15/03/19)
relationship
Each week China Matters collates news items about the Australia-China relationship
Analysts are uncertain how long Australian woolgrowers will ride the wave of positive prices generated by China’s decision to suspend wool trade with South Africa after the outbreak of a serious livestock virus.
Cape Wools SA, South Africa’s peak wool industry organisation, confirmed last month China had stopped importing wool from the African country following a foot-and-mouth detection on its main- land in January.
The announcement sparked a sharp reaction in Australia, with the Eastern Market Indicator closing 59¢/kg higher at 2027¢/kg clean on February 22.
It remains unknown how long China’s temporary embargo on South African wool imports will be enforced.
Read more: https://thewest.com.au/countryman/wool/china-ban-boon-for- australia-ng-b881127996z
15. Bounded engagement: charting a new era in Australia-China relations
14/03/19 Bates Gill Australian Financial Review
It has to be said, but few wish to: we are transitioning to a new and more difficult era with China. Laden with contradictions even in the best of times, it is clear Australia-China ties will become more challenging in the years ahead. We can expect the parameters of the possible for Australia-China relations to steadily narrow as each side rethinks the value proposition of the relationship. In short, we should be preparing for a protracted period of "bounded engagement".
Neither side can afford to close off the relationship. Engagement remains in our best interests. But the setting in which engagement occurs will be less expansive and open-ended than in the past.
The question for Australians is, what should "bounded engagement" look like? In this more constrained atmosphere, what should be the rules of engagement with China to best realise Australian values and interests? Where are opportunities for engagement in this environment and where are the risks?
China Matters Media Roundup Issue 112 (09/03/19 - 15/03/19)
relationship
Each week China Matters collates news items about the Australia-China relationship
Read more (Paywall): https://www.afr.com/news/world/asia/bounded- engagement-charting-a-new-era-in-australiachina-relations-20190312-h1c9vf
16. China is overhauling its foreign investment laws today – how might it affect business in Australia?
15/03/19 Michael Walsh ABC News
China's congress is set to pass a massive revamp of its Foreign Investment Law today, a revision that Chinese officials say will put foreign companies that invest in China on an equal footing with local firms.
However some aspects of the law — specifically an article about Beijing's right to take retaliatory measures against countries it believes are discriminating against Chinese companies — have been pointed to as a cause for concern.
The key reason is that it's unclear whether moves like Australia's decision to block telecommunications company Huawei from participating in its 5G network could be seen as discriminatory.
A spokesperson for Australia's Department of Foreign Affairs (DFAT) told the ABC it had sought additional information on this legal article from Chinese authorities.
Read more: https://www.abc.net.au/news/2019-03-15/china-new-foreign- investment-law-what-it-means-for-australia/10889588
17. Australian coal still facing Chinese delay
15/03/19 AAP 9 News
Australian coal exports to China are still facing delays, with protectionism and environmental checks blamed for the slowdown.
Coal export unloading times have almost doubled to 40 days in recent months, prompting Australia to seek an explanation for the delays.
China Matters Media Roundup Issue 112 (09/03/19 - 15/03/19)
relationship
Each week China Matters collates news items about the Australia-China relationship
Trade Minister Simon Birmingham said on Friday the government was closely monitoring the situation, but accepted assurances from Chinese authorities the blowout in wait times was not country-specific.
He said domestic protectionist pressure stemming from China's support for its own coal industry and limiting steel production was a factor.
A higher level of quarantine checks for environmental reasons has also impacted Australian exports.
Read more: https://www.9news.com.au/2019/03/15/08/45/australian-coal-still- facing-chinese-delay
18. Chinese-Australian relations may not be ‘toxic,’ but they do need to keep warming up
15/03/19 Tony Walker The Conversation
When former Trade Minister Andrew Robb took to the ABC’s AM program to sound off about a “toxic” relationship between Australia and China, he exposed a rippling debate about how to manage an increasingly complex foreign and security policy challenge.
Long gone are the days of the John Howard formula that Australia did not have to choose between its history, meaning America, and its geography, meaning China. Choices are no longer binary.
While the Robb word “toxic” may be an exaggeration, stresses in Australia-China relations are such it is clear we have entered a new and more challenging phase.
For a start, China is undergoing what is, arguably, the most testing moment of an economic transformation that began in 1978 at the third plenary of the 11th Central Committee of the Chinese Communist Party. This is when Deng Xiaoping re-emerged to initiate one of the more remarkable economic shifts of the modern era.
Read more: http://theconversation.com/chinese-australia-relations-may-not-be- toxic-but-they-do-need-to-keep-warming-up-113545
China Matters Media Roundup Issue 112 (09/03/19 - 15/03/19)
relationship
Each week China Matters collates news items about the Australia-China relationship
19. Australian coal hit my Chinese protectionism, says Simon Birmingham
15/03/19 Primrose Riordan The Australian
Chinese government protectionism is hitting Australian coal exports to China, says Trade Minister Simon Birmingham.
“We do know there is some domestic protectionist type pressures that exist around support for China’s coal industry, possibly some...in relation to limited steel production,” Senator Birmingham said.
“So we’re trying to understand all of those moving parts and of course watching very close what’s happening at all of the ports in terms of the speed of processing times.”
Australian coal exports have been hit by slower processing times and delays since earlier in the year, leading to concerns China may be implanting non-tariff barriers to retaliate for Australia’s move to effectively ban Huawei from Australia’s 5G network.
Read more (Paywall): https://www.theaustralian.com.au/business/mining- energy/australian-coal-hit-by-chinese-protectionism-says-simon- birmingham/news-story/2acb6b30dd9d385c18905456813d5ed1
China Matters Media Roundup Issue 112 (09/03/19 - 15/03/19)