Australian Workers’ Union backs Scott Morrison on China, Beijing warns it could buy iron ore from Brazil
Beijing has upped the stakes in its war of words with Australia over COVID-19 as one of Australia’s most powerful trade unions has backed Scott Morrison to stand up to China.
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China has threatened to cut off Australia’s $63 billion iron export pipeline to the communist nation in what it describes as a “wake up call”.
The menacing warning came as the boss of one of Australia’s most powerful unions took the extraordinary step of writing to Prime Minister Scott Morrison, urging him not to be “bulled” by China.
In a major raising of the stakes in Beijing’s stoush with Australia over PM Morrison’s calls for an international inquiry into the origins of COVID-19, China has made it clear that it can easily look elsewhere to source key imports.
The threat served up in China’s state-owned Global Times follows Beijing suspending trade with four Australian abbatoirs and threatening 80 per cent tariffs on barley imports.
“The latest meat import suspension and the possible imposition of major tariffs on Australia’s barley exports don’t necessarily represent China’s economic punishment for Australia, though they may serve as a wake-up call for Australia to reflect on its economic links with China,” the Global Times said.
‘While China is the only choice for Australia’s massive commodity exports, Australia is not necessarily the only option for China. There are also other countries like Brazil that can supply huge amounts of iron ore, coal or LNG to China.”
Professor Willy Lam from the Chinese University of Hong Kong told Nine Entertainment Newspapers that China would continue to use “economic coercion for political ends”.
“It doesn’t want an independent inquiry into Wuhan. This is well orchestrated and co-ordinated. I think we will see more of this.”
AWU TELLS PM: DON’T BE BULLIED BY CHINA
One of Australia’s biggest trade unions has taken the extraordinary step of writing a letter of support to Prime Minister Scott Morrison over his hard line stance on China.
Flying in the face of criticism of the government by Labor leader Anthony Albanese and state Labor governments, the 100,000-strong right faction-aligned Australian Workers’ Union told Mr Morrison he must not be “bullied” and should stand firm against the communist state.
“Australia should resist any attempts to be bullied,” AWU national secretary Daniel Walton said in the letter, sent after China suspended trade with four local meatworks and threatened huge tariffs on barley exports.
“It is critical the Australian government holds its nerve against such pressure and enforces its international and domestic rights.”
Australian industry figures fear China is targeting local exporters in a pressure campaign against nations supporting a global investigation into the COVID-19 pandemic.
But the AWU boss said the Morrison government should not “capitulate” even as China looks set to leverage international trade rules to try to force Australia to back down.
Mr Walton declared it was time to stand up against Chinese aggression.
“It might suit billionaires who have cosy relationships with the Chinese Communist Party for our government to roll over, but AWU members expect their government to stand for them and defend the national interest,” he wrote.
He wants Australia to team up with its international partners to establish a “trade NATO” bloc powerful enough to take on “China’s preferred approach of bilateral bullying”.
“The integrity of Australia’s trading regime is paramount to sovereignty,” the AWU boss wrote. “We note with concern the pressure being placed upon the Australian government with respect to the integrity of its trade regime.”
Mr Morrison told parliament the government would always act in the “national interest” and stand “firmly behind our agricultural producers”.
The World Health Assembly will meet next week to discuss an EU motion to launch a global investigation into the spread of the coronavirus, which China has accused Australia of leading.
West Australian Premier Mark McGowan said he had contacted Mr Morrison to offer his help in easing tensions with China, adding it was critical not to “jeopardise” relations with key trading partners. Mr Albanese and senior opposition MPs joined the Labor states in pressing the government over tensions with China.
But the Opposition Leader, who backs the independent review into COVID-19, said Labor agreed that “Australia must always stand up for our national interests”.
AUSSIE INDUSTRY FEARS ‘TRADE WAR’ WITH CHINA OVER COVID INQUIRY
Australian industry leaders are bracing for a full-scale trade war with Beijing after China suspended imports from four local meatworks amid ongoing calls for an international inquiry into the origins of COVID-19.
The suspension is said to be related to a “labelling” issue, but industry figures see it as a sign that Beijing’s anger over Australia’s push for an inquiry could threaten the $153 billion export market to China.
Tensions rose again when Beijing accused Australia of launching an inquiry into the COVID-19 pandemic for political reasons, The Australian reported.
The communist power declared that “mutual respect and equality” must form the basis of bilateral relations after China threatened to impose tariffs on Australian barley exports and the suspension of meat exporters.
Industry leaders now say they expect Beijing to “retaliate” – most likely leading to a crippling trade war.
Despite Beijing stepping up its criticism of Prime Minister Scott Morrison’s calls for a global investigation, China’s Foreign Ministry insisted a crackdown on four abattoirs in Queensland and NSW was not related.
The four meatworks were officially suspended over labelling issues.
But Foreign Ministry spokesman Zhao Lijian warned Australia’s “political manoeuvre” against China would end up being “an unpopular move”.
“As to the Australian-launched inquiry into the virus, as is known by all, the origin of the virus requires the assessment of specialists and scientists,” Foreign Ministry Zhao said.
“Using the virus for political manoeuvre will only disrupt the epidemic co-operation. This will only be an unpopular move. China always believes that mutual respect and equality should be the basis for the development of bilateral relations.”
But leaders of other sectors of the economy have taken the latest moves against Australian companies as a sign of a “trade war” to come as China considers imposing tariffs of up to 80 per cent against local barley exports.
Many of them even want the Morrison government to tone down their rhetoric against Beijing over the coronavirus disaster.
The Chinese-government-owned Global Times, a mouthpiece for the communist regime, said the threat to slap tariffs on Australian barley exports, which peaked at almost $1.5bn in 2017, could be followed by additional “retaliatory measures”. It described the relationship with Australia as moving towards its “lowest point in decades”.
Zhao referred to remarks made by China’s ambassador to Australia last month threatening boycotts of Australian products, including beef and wine.
“It expresses the concerns of Chinese people about the statement on the Australian side. I don’t see any problem with that,” he said.
Perth USAsia Centre research director Jeffrey Wilson said he believed China and Australia were now engaged in a “trade war” and that the suspension of imports from the four meat facilities would disrupt about a third of Australia’s $3bn annual beef exports to China.
“This is unquestionably political retribution,” Dr Wilson said. “This is not about technical issues and arguments over trade policy. This is about diplomatic signalling and making a point. Australia now finds itself in a trade war.”
But Trade Minister Simon Birmingham was at pains to dismiss fears of a trade war.
“Australia is not in any sort of war. Our intentions to work as cooperatively as we can with our partners and across the world,” Senator Birmingham said.
The Australian said the beef, grain, wine and seafood sectors are bracing for further action from China as experts warn of a looming “trade war” with Beijing.
Australian Grape & Wine chief executive Tony Battaglene said the wine industry feared it could be next.
“Of course we’re nervous,” Mr Battaglene said. “Every time there is a diplomatic spat we worry about borders being closed and the possible impact that could have on our exports.”
T RUMP SCRAPS $4B INVESTMENT PLAN FOR CHINA
The Trump administration has directed the US federal employee retirement fund to scrap its plan to place more than $4 billion into Chinese investments, a move that comes as the president blames Beijing almost daily for not doing more to stop COVID-19 from spreading around the world.
The administration has given the board overseeing the Thrift Savings Plan until Wednesday (local time) to comply with the president’s directive.
National Economic Council Chairman Larry Kudlow and the president’s national security adviser Robert O’Brien wrote a letter Monday to Labor Secretary Eugene Scalia calling on the retirement fund’s board to keep money out of Chinese equities.
Fox Business Network first reported the development.
The letter warned that such investments present significant national security and humanitarian concerns because they operate in violation of US sanction law and help China bolster its military and oppress religious minorities living in the country.
“The Federal Retirement Thrift Investment Board is set to implement these plans during a time of mounting uncertainty concerning China’s relations with the rest of the world, including the possibility that future sanctions will result from the culpable actions of the Chinese government with respect to the global spread of the COVID-19 pandemic,” the letter said.
O’Brien told Fox Business Network’s Varney & Co. on Tuesday that several billions were going to be invested in Chinese military companies or surveillance state companies.
“We thought that was risky for U.S. national security but we also thought it was risky for the investors, because those companies don’t have to comply with the same … rules that you’d have to if you were listed on the stock exchange,” O’Brien said.
Scalia followed with a letter to the Federal Retirement Thrift Investment Board asking it to forgo its plan to move money into the Chinese equities.
– with AP
Originally published as Australian Workers’ Union backs Scott Morrison on China, Beijing warns it could buy iron ore from Brazil