China's actions against Australia may lead other countries to be more careful over Chinese investment

·2-min read
Representative Image
Representative Image

Canberra [Australia], May 19 (ANI): As relations between China and Australia have taken a turn for the worse, experts say that Beijing's actions against Canberra may lead other countries being more careful in considering investment from Chinese companies.

"They may try to slow the growth of economic ties with China, such as through restricting investment in some sectors," The Diplomat quoted Melissa Conley Tyler, a research fellow at the University of Melbourne's Asia Institute.

"This means Chinese investors may find overseas markets less friendly, as has happened in Australia with much of the economy now unavailable," Tyler added.

The recent tensions between China and Australia escalated after Canberra announced the cancellation of the Belt and Road Initiative (BRI) agreement with China last month, saying it goes against its national interest.

Australian Foreign Minister Marise Payne said that the BRI deal has been canceled under the Commonwealth's new foreign veto laws.

The cancellation could also mean an end to further Sino-Australian cooperation in the fields of industrial production, biotechnology and agriculture.

In retaliation, China decided to suspend all its activities under the Strategic Economic Dialogue with Australia

"China indefinitely suspends all activities under the framework of the #China-#Australia Strategic Economic Dialogue held by the Chinese National Development and Reform Commission and relevant Australian ministries," China Global Television Network (CGTN) said in a tweet.

The Diplomat reported that days after the suspension of the accord, Australian Prime Minister Scott Morrison announced that his government would not hesitate to review a Chinese company's ownership of the Darwin port, a critical piece of infrastructure for Australian security.

"If there is advice from the Defense Department or our security agencies that change their view about the national security implications of any piece of critical infrastructure, we have legislation now which is dealing with [that]. You would expect me as prime minister to take that advice very seriously and act accordingly," he told reporters.

Meanwhile, China imposed a ban on some Australian imports of coal, sugar, barley, lobsters, wine, copper and log timber from November 2020 that had an unintended effect. The price of coking coal in China, needed to fuel its steel-making industry, soared to a four-year high after Beijing unofficially banned coal imports from Australia and faced delays in securing imports from neighbouring Mongolia.

Furthermore, the communist nation also faced its worst power blackouts in a decade due to the coal shortage, reported The Diplomat.

Sino-Australian relations have been in a downward spiral since April last year when Canberra infuriated Beijing by proposing an independent international inquiry into the origins of the COVID-19 pandemic.

Canberra has been locked in an ongoing trade war with Beijing for several months as China has slapped sanctions on various Australian products. (ANI)

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