In the latest episode of the bizarre and wonderful annals of Beijing looking after Australia’s national interest far better than Canberra, we have this:
Chinese Foreign Ministry spokesman Wang Wenbin defended Beijing’s trade sanctions on $20 billion of Australian exports, saying the measures were “legitimate, legal and beyond reproach”.
Wang said China’s stance is “strictly in accordance with Chinese laws and regulations and WTO rules to safeguard the legitimate rights and interests of relevant industries in China and the safety of our consumers.”
“Our position on China-Australia relations is consistent and clear,” he said.
Wang said Beijing hoped Australia would “manage bilateral relations in the spirit of mutual respect and mutual benefit and work with China to promote the solid and steady development of China-Australia comprehensive strategic partnership.”
Thank you, Beijing, for rejecting the prostrations of Albo’s cowards. Maintaining trade sanctions is precisely what we need to prevent any increase in business-to-business ties, which will allow Australia to pursue its putative plan to diversify away from China.
There’s even better investing news:
Chinese investment in the Australian economy has fallen 69% over the past financial year, according to new data from KPMG and the University of Sydney Business School.
More than $1 billion in Chinese investment has been wiped out of Australia in 2021, with Chinese outward direct investment (ODI) falling to its lowest level since 2007.
Moreover, it is a wonderful forerunner of Australia stating force majeure (due to the war in Ukraine) about 20% of the gas on the coast is destined for China. China absorbs more than 70% of East Coast volumes, so taking back 20% would only represent 14% of overall exports.
But that would be enough to drive the price of local gas down to $5 Gj and deepen the energy crisis at home.
We would still need to do the same with thermal coal, but China is no longer taking that from Australia.
Well done Beijing!