Business

US accuses China of ‘economic warfare’ against Australia

Beijing continues to sanction many Australian exports including barley, coal, wine, beef, dairy products

Updated 4 years ago · Published on 01 Dec 2021 3:30PM

US accuses China of ‘economic warfare’ against Australia
China is livid over Australia’s clampdown on overseas influence operations, barring of Huawei from 5G contracts, and calls for an independent probe into the origins of Covid-19. – AFP pic, December 1, 2021

SYDNEY – US President Joe Biden’s top Pacific envoy yesterday accused China of trying to “drive Australia to its knees” through a barrage of sanctions that amounted to “economic warfare”.

In remarks to the Sydney-based Lowy Institute, veteran diplomat Kurt Campbell lampooned Beijing for strong-arm tactics.

Painting China as increasingly bellicose and determined to impose its will overseas, Campbell said Beijing had engaged in “really dramatic economic warfare – directed against Australia”.

Over the last two years, China has introduced a raft of punitive sanctions on Australian goods in a fierce political dispute that has frozen ministerial contacts and plunged relations into the most serious crisis since Tiananmen.

“China’s preference would have been to break Australia. To drive Australia to its knees,” said Campbell, who currently serves as the White House Indo-Pacific coordinator.

China has been angered at Australia’s willingness to legislate against overseas influence operations, to bar Huawei from 5G contracts and to call for an independent investigation into the origins of the coronavirus pandemic.

Australian barley, coal, copper ores, cotton, hay, logs, rock lobsters, sugar, wine, beef, citrus fruit, grains, table grapes, dairy products and infant formula have all been subject to Chinese sanctions.

The US envoy said that under President Xi Jinping, China has become “more risk acceptant, more assertive, more determined to basically take steps that other countries would view as coercive.”

The Biden administration has embraced a policy of “strategic competition” with China – acknowledging rivalry between the two powers but maintaining ties so conflicts do not spiral out of hand.

Nuclear-powered submarines

Biden recently shocked many in the region by agreeing to share sensitive nuclear-powered submarine technology with Canberra, allowing Australia to dramatically increase its military deterrence.

Campbell indicated the move – part of a broader three-way Aukus agreement that includes the United Kingdom – would bind the three allies for generations.

“When we look back on the Biden administration – I believe it will be among the most significant things that we accomplish. And I think in 20 years it will be taken as a given that our sailors sail together, our submarines port in Australia.”

Canberra and London’s economic ties with a rapidly growing China had put the alliance in doubt, Campbell admitted.

“Seven or eight years ago, if you asked the countries that were most likely to realign strategically and kind of rethink its options... near the top of that list would probably be both Great Britain and Australia,” he said.

Campbell also revealed that other Pacific allies would likely take part in cyber or other non-submarine aspects of the Aukus agreement.

“Many close allies have come to us, in the immediate aftermath and said, can we participate? Can we engage?

“It is to the credit of Australia and Great Britain, that they insisted, yes, this is not a closed architecture.” – AFP, December 1, 2021

Related News

Malaysia / 2w

PM Anwar loses beloved elder brother; Idrus Ibrahim passes away

Malaysia / 2w

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

Malaysia / 1mth

Jokowi calls on global institutions to meet  needs growing, interconnected world

Malaysia / 1mth

Billionaire numbers reach record high as wealth remains concentrated

Spotlight

Malaysia

Five fatal helicopter crash victims honoured in Sarawak state awards

Malaysia

No Malaysian is left behind; Budget 2027 puts people first - Anwar  

Malaysia

Panama hit by 6.4-magnitude earthquake

Malaysia

Haze blankets 33 areas with unhealthy air

Malaysia

Malaysia’s 2027 Budget is a steady one: people-oriented continuity rather than bold reform

Malaysia

Budget 2027: What is in it for me?

Malaysia

Budget 2027 steps up Sabah, Sarawak funding by RM2.2b amid push for development parity

Malaysia

Budget 2027: Maternity leave entitlement increased, minimum pension raised to RM1,350

You may be interested

Business

Budget 2027 targets foreign e-commerce platforms, channels billions into local firms and startups

Business

Malaysia draws US$9.5b in orders for US$1.5b sukuk, cuts borrowing costs

Business

Budget 2027 channels RM270m to SMEs through crowdfunding, P2P financing

Business

Oil slips on Trump’s Iran remarks, but supply risks and strong US dollar keep markets on edge