Not long ago Australia banned Huawei from rolling out 5G equipment to the country because of a risk that it could allow Beijing to collect the personal data of its citizens. “Security has always been about confidentiality, integrity and availability,” Mike Burgess, director-general of the Australian Signals Directorate, said. China’s government took this decision as a personal offense. Since then, trade relations between the two countries have worsened. China seems to seek any opportunity to take revenge.
For instance, $500 million of Australian coal has been blocked from Chinese ports for more than a month following the escalation of the trade tensions. A total of 53 ships are still waiting to dock off several ports in China. However, these sanctions can hardly be called symmetrical. The espionage scandal has seriously deterred China’s reputation as a reliable partner. However, China has been able to rebound from the coronavirus crisis faster than in other countries. Now it is experiencing an economic boom in many sectors, while Australia is still struggling with the virus consequences and worsening economic indicators. The series of trade actions taken by China may deliver a severe blow to Australia’s economy.
Prime Minister of Australia Scott Morrison is trying to take a softer tone with the Chinese government hoping to soothe the bitter feud. “What is most important is [that] despite the events of recent months and weeks and indeed years, Australia remains committed to constructive and open and regular dialogue at a leader and ministerial level to address the tensions are clearly there in the relationship. We will continue to be clear. Our national interests have been clearly articulated and the Australian government’s position on those is clearly understood,” he said.
Market experts are skeptical about China’s way to take revenge. Austria will not lift the ban on Huawei as it concerns national security. Therefore, blocking Australia’s ships from entering ports does not seem the right way to build a constructive dialog.
