In the bitter trade war between China and Australia, the former has now openly admitted that Australia cannot expect to profit from China while "smearing it".
ABC News reported that a Chinese Communist Party official openly declared on Wednesday that Beijing has singled out Australia for economic sanctions.
The Australia-China spat, which is over a year old, began after Australia vociferously asked for an investigation into the origin and spread of the coronavirus last year. The deadly infection, which has taken over four million lives globally, spread internationally from Wuhan late 2019. China has not taken kindly to the Australians
sticking to their point consistently since last year.
In retaliation, China has levied heavy sanctions on Australian goods—barley and wine. Being the largest trade partner to Australia, while feeding its gigantic consumption needs, China erected barriers to other Australian produce like timber, lobster and coal. The communist country was swift to retaliate against both-agricultural produce and minerals with a view to hurting and "punishing China".
Chinese economic sanctions were levied under the shelter of "dumping duties" on Australian products.
This week Chinese Foreign Ministry spokesman Zhao Lijian said: "Mutual respect is the foundation and safeguard of practical cooperation between countries. We will not allow any country to reap benefits from doing business with China while groundlessly accusing and smearing China and undermining China's core interests based on ideology".
Zhao also raised the American bogey by claiming that Australia was acting on behalf of the US, another country with whom China is involved in a bitter trade war.
Despite China's efforts to hurt Australian economy, it has only partly succeeded as Australia has found new markets for some of its farm products. Also, the restrictions on Australian coal has sent coal prices soaring in the international markets forcing China to buy coal at higher prices from numerous countries, ironically including Australia.
Australia has dragged China to the WTO over unfair levies.
The dipping relations have led to uncharitable diplomatic exchanges between the two nations.
ABC News quotes Federal Treasurer Josh Frydenberg as saying: "They have made no secret of the fact that some of our exports are not making their way to China — our barley, wine, coal. But what is making its way to China because they need it most is our iron ore, and the price of iron ore is at record highs. And that is providing
significant revenue."
Analysts, however point out that despite the windfall, it is unlikely to be endless, as China is heading full steam into Africa to seek captive resources including iron ore to reduce its reliance on Australia.
