World

China warns of retaliation after Australia scraps BRI deal

Canberra, however, insists it will not be bullied

Updated 5 years ago · Published on 22 Apr 2021 11:30PM

China warns of retaliation after Australia scraps BRI deal
China has slapped tariffs on more than a dozen Australian industries in what many see as punishment for Canberra’s increasingly assertive stance against its largest trading partner. – EPA pic, April 22, 2021

BEIJING – China today said Australia’s sudden scrapping of a Belt and Road Initiative (BRI) deal risks “serious harm” to relations, and warned of retaliatory actions against a country that insists it will not be bullied. 

Canberra pulled the deal with Victoria state yesterday in a move destined to provoke Beijing, but justified by the defence minister as necessary to prevent Australia from hosting a giant infrastructure scheme “used for propaganda”. 

Australia overruled Victoria’s decision to join BRI – the flagship of President Xi Jinping’s geostrategic vision for the Asia-Pacific region – saying the agreement is inconsistent with Australia’s foreign policy.

As relations nosedive – following spats over the origins of Covid-19 and Canberra’s blocking of Chinese telecoms giant Huawei – Defence Minister Peter Dutton said Canberra is “worried” about local governments entering into such agreements with Beijing.

“We can’t allow these sorts of compacts... to pop up because they’re used for propaganda reasons, and we’re just not going to allow that to happen,” he told local radio.

He said the government’s problem is not with Chinese people, but rather, “the values or virtues or the outlook of the Chinese Communist Party”.

Australia last year enacted new powers – widely seen as targeting China – that allow it to scrap any agreements between state authorities and foreign countries deemed to threaten national interest.

Canberra’s first target was BRI, a vast network of investments that critics have said is a cover for Beijing to create geopolitical and financial leverage.

Beijing laid into the Australian government today, saying it will damage trust between the two countries, and warned that it may take further actions in response.

The move “recklessly interferes in and destroys normal exchange and cooperation, and seriously harms China-Australia relations and mutual trust between the countries”, Foreign Ministry spokesman Wang Wenbin told a briefing here.

“China reserves the right to take further action in response to this.”

Dutton said he would be “very disappointed” should China retaliate, but retorted that Australia “won’t be bullied by anyone”.

“We are going to stand up for what we believe in, and that’s exactly what we’ve done here.”

China has already slapped tariffs on more than a dozen Australian industries, including wine, barley and coal, in what many see as punishment for Canberra’s increasingly assertive stance against its largest trading partner.

Australia infuriated China by calling for an independent probe into the origins of the coronavirus pandemic, banning Huawei from building Australia’s 5G network and tightening foreign investment laws for corporations.

Other agreements between foreign powers and local governments are still under consideration, and Canberra may yet target the presence of Chinese government-backed Confucius Institutes at Australia’s public universities.

Critics said the institutes, which have been the subject of controversy on some campuses, promote the Communist Party’s self-serving version of Chinese culture and history. – AFP, April 22, 2021

Related News

Opinion / 5d

Will the AI bubble burst?

Events / 1w

Shanghai trade fair returns to KL with 500 exhibitors in November

Malaysia / 1mth

PM Anwar loses beloved elder brother; Idrus Ibrahim passes away

Malaysia / 1mth

Anwar asks Loke to reconsider resignation over Najib pardon

Malaysia / 1mth

Penang-born woman dies in Perth after alleged domestic violence assault

Opinion / 1mth

Foreign influence, covert activities within Malaysian politics and society

Spotlight

Malaysia

PLUS highway congested since midnight ahead of Deepavali

Malaysia

AGC: Najib's house arrest should be suspended pending legal review

Malaysia

Anwar becomes a Tamil movie hero for Deepavali (video)

Malaysia

Anthony Loke’s resignation takes effect when Najib arrives home

By Alfian Z.M. Tahir

Malaysia

Tony Pua urges BNM, MACC to audit RM50 million fund used to pay Najib’s fine

Malaysia

Prepare a 72-hour food supply; avoid panic buying – FOMCA

Malaysia

Anwar hopes US election outcome will ease global tensions, hostility towards Islam and Iran

Malaysia

Najib leaves Kajang Prison after High Court issues house arrest order

You may be interested

World

Nearly 90 million displaced people exposed to climate risks, UNHCR warns

World

Death toll from Russian strike on Ukraine aid distribution point rises to 53

World

Leader of a deviant sect sentenced to 200 years in prison for killing 190 children

World

US sanctions 45 entities linked to Cambodia cybercrime syndicate

World

Trump says Washington 'doing very well' with Tehran as nuclear talks continue

World

Iran reports six vessels ablaze in separate Strait of Hormuz incidents

World

Iran warns countries aiding US military action will become 'legitimate targets'