China’s top diplomat issues dire trade warning to Australia

MALCOLM Turnbull has downplayed suggestions of a rift with China after Beijing’s senior diplomat in Canberra said the ‘growing lack of mutual trust’ between the two nations could damage trade.

MALCOLM Turnbull has downplayed a dire warning from China’s most senior diplomat in Australia that a “growing lack of mutual trust” between the two countries could damage trade.

China’s Ambassador to Australia Cheng Jingye has told The Australian that diplomatic relations have been marred by “systematic, irresponsible and negative remarks” about China.

The Ambassador also hit out at reports China had attempted to interfere in Australia’s political process.

It comes after reports China has put the Turnbull Government into diplomatic deep freeze by refusing to grant visas to senior ministers.

Prime Minister Turnbull declared overnight that there were differences in relationships “from time to time” but trade with China had “never been higher”.

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Prime Minister Malcolm Turnbull with British Prime Minister Theresa May and Canadian Prime Minister Justin Trudeau at the CHOGM meeting in London. Picture: AAP

He told reporters at the CHOGM meeting in London if there were “ups and downs” in the relationship with China, they were coming from a “very high base”.

Last week, Mr Turnbull acknowledged there were “some tensions” in relations but rejected reports ministers had been outright denied visas to China.

The Prime Minister also secured an assurance from Vanuatu’s Prime Minister overnight that the Pacific Island nation will never allow China to build a military base on its shores.

Mr Turnbull met with Prime Minister Charlot Salwai in London following media reports that security officials were worried about China’s intentions in Vanuatu.

Mr Salwai said he had worked in government for 27 years, as an adviser and MP, and the idea of a Chinese military base had never been raised.

He ruled out any plans for a Chinese base in his country, and said he raised it with Mr Turnbull in their bilateral meeting.

“I want to assure the Prime Minister that Vanuatu was never dreaming to become a military base one day,” he said.

“I rule it out.”

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Prime Minister Turnbull with the Prime Minister of Vanuatu Charlot Salwai in London. Picture: AAP

“It is not in our culture, it is not in our tradition.

“We are the happiest people, and I think that’s enough for us.”

China is building a wharf in Vanuatu funded by a concessional loan, but Mr Salwai said the loan was cheaper than the one Japan offered when the Port Vila wharf was built.

China has said reports it wants a military base in Vanuatu are “sheer fiction” from troublemakers.

Fears over the military base were the latest flash point in Australia-China relations.

Ambassador Cheng told The Australian the downward spiral in relations had begun late last year and referred to the Prime Minister’s announcement of new laws to crack down on espionage and foreign interference in the political process.

Anti-China rhetoric also flared when former Labor senator Sam Dastyari’s ties with a Chinese businessman made headlines.

“If there is a growing lack of mutual trust, in the long run it may have some undesirable impact (on trade relations with China),” Mr Cheng told the publication from China’s embassy in Canberra.

He said there was “huge potential” for more co-­operation between Australia and China in coming decades.

“Unfortunately, over a certain period, especially starting from the latter half of last year, we have seen a kind of systematic, irresponsible, negative remarks and comments regarding China which has caused adverse impact on bilateral relations,” he said.

“It is detrimental to the image of Australia in the eyes of the Chinese public. It is something that neither side would like to see.”

Mr Cheng said last year’s campaign against Mr Dastyari had been “unfortunately manipulated as a pretext to smear China’s image”.

“As we have said repeatedly, we have no intention nor have we in any way intervened in the Australian political process,” Mr Cheng said.

“Any such accu­sations or ­allegations against China are groundless.”

Mr Chenge said more needed to be done by Australia to “increase mutual trust.”

Read more in The Australian.

Originally published as China’s top diplomat issues dire trade warning to Australia