Australia’s goodwill gestures with China will hurt its own industries – Global Times

Amid deteriorating Australian-Sino tensions amid persisting trade issues, China’s highly-influential news outlet, Global Times, warns that Canberra’s trade war escalation could negatively impact its own industries.

Key takeaways

“Rather than reflecting on its own remarks and moves, Australia has tried to fabricate claims of China triggering a so-called trade war against Australia and China refusing to communicate.”

“Alongside Canberra's attempts to put pressure on ties with Beijing, Australian Prime Minister Scott Morrison recently said that Australia desires an open, transparent and mutually beneficial relationship with China as its largest trading partner. This has been regarded as a gesture to mend relations with China.”

“Betting on both sides through extending an olive branch while trying to exert pressure at the same time is neither practical nor beneficial for Australia; instead, it will further hinder the bilateral relationship and cast a shadow on Australian industries.”

This comes after Australian Trade Minister Simon Birmingham said over the weekend that they prepare to escalate action against China to World Trade Organization (WTO) over barley tariffs.

Responding to Australia’s claims, Chinese Foreign Ministry spokesperson Zhao Lijian said: "Chinese competent authorities' measures on imported products are in line with Chinese laws and regulations and international customary practices. They are being responsible for Chinese consumers and domestic industries." 

Also, hampering relations between the two closing trading partners is the spat over China’s ‘falsified’ tweet on the Australian army. Chinese foreign ministry spokesperson Zhao Lijian tweeted a graphic image of an Australian soldier holding a bloodied knife to a child's throat in Afghanistan.

In response, the aussie Prime Minister Scott Morrison demanded an apology from the Chinese government for tweeting a “falsified” and “repugnant” image.

However, Beijing rejected calls from PM Morrison to apologize for the inflammatory tweet.

Market reaction

The risk sentiment remains undeterred by the Australian-Sino tensions, as the coronavirus vaccine-driven economic optimism supersedes.

AUD/USD trades near-daily highs of 0.7371 amid risk-on mood and RBA’s status-quo. Meanwhile, the S&P 500 futures rise 0.80% to regain 3,650.