Australia calls Beijing suspension of economic dialogue ‘disappointing’

This undated photo shows the national flags of China and Australia. (PHOTO / VCG)

The Australian government says it is disappointed with Beijing’s decision to indefinitely suspend the China-Australia Strategic Economic Dialogue.

The China-Australia Strategic Economic Dialogue was set up in 2013 by the former Labor government led by Prime Minister Julia Gillard

The National Development and Reform Commission (NDRC) said in a statement posted on its official website on May 6 that some Australian officials recently launched a series of measures to disrupt the normal exchanges and cooperation between China and Australia out of Cold War mindset and ideological discrimination.

Australia’s Trade Minister Dan Tehan described the decision as "disappointing". Federal Opposition Leader Anthony Albanese said the decision was "regrettable".

The China-Australia Strategic Economic Dialogue was set up in 2013 by the former Labor government led by Prime Minister Julia Gillard to bring ministers and bureaucrats from both countries together to discuss issues economic and trade issues affecting both countries.

Professor James Laurenceson, director of the Australia-China Relations Institute at the University Technology Sydney, said: “I don’t think we should read too much into the NDRC’s announcement.

“I think it is a response to Canberra’s decision to tear up the Victorian government’s BRI agreements with Beijing.

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Late last month the federal government tore up to Belt and Road Initiative agreements between Beijing and the state government of Victoria. And in another move that is expected to see relations deteriorate even further the government is examining a 99-year lease for the port of Darwin in northern Australia with Chinese company Landbridge.

“The move will not affect trade but what it does do is sever the only bureaucratic link we have with the NDRC. All ministerial dialogue with China was suspended some time ago,” he said.

The last China-Australia Strategic Economic Dialogue was held back in 2017.

Richard McGregor, a senior fellow at the Lowy Institute, said, “It is probably no surprise to the federal government. Chinese diplomats made it clear in private that if the BRI deal was cancelled, the NDRC would respond.”

“It is symbolic but not without meaning. Every time we do something there will another response so it is not the end of the road,” he told the Australian Financial Review.

Analyst Jeffrey Wilson, from the Perth USAsia Centre, speaking to the ABC, noted the Strategic Economic Dialogue had been in abeyance for nearly four years.

Bilateral ties have been deteriorating since 2018 when Australia became the first country to publicly ban Chinese tech giant Huawei from its 5G network citing ground of national security.

karlwilson@chinadailyapac.com