Beijing’s latest backhander to Australia: ‘Cold War mentality’

China has seemingly retaliated against Australia for tearing up the Victoria Belt and Road, leaving the outlook for the countries’ relationship “bleak”.

In a diplomatic backhander, China has cut off a contact with Australia through a key channel, blaming the nation’s “Cold War mentality” in what is being seen as a retaliation for the Federal Government ripping up Victoria’s Belt and Road.

Experts have described the relationship with China as bleak, with the latest development making it harder to repair the frayed connection with Australia’s biggest trading partner.

The increasingly assertive Asian superpower is said to have used the tactic to show its “displeasure” with Canberra.

Chinese President Xi Jinping. China has cut off a key diplomatic communication channel with Australia. Picture: Xie Huanchi/Xinhua/Getty Images

The move came as Foreign Minister Marise Payne was in London for the G7 leaders meeting, which was being touted as a “meeting of democracies”.

On Thursday afternoon, China’s National Development and Reform Commission released a statement saying it was “indefinitely suspending” the China-Australia Strategic Economic Dialogue, a diplomatic mechanism for ministerial talks on trade and economic matters.

“Recently, some Australian Commonwealth Government officials launched a series of measures to disrupt the normal exchanges and co-operation between China and Australia out of Cold War mindset and ideological discrimination,” a spokesman for the commission said.

Strained relations between the two countries meant the mechanism had not been used since 2017.

But Griffith Asia Institute director Caitlin Byrne said the symbolic move was intended to be a visible sign of China’s displeasure with Australia.

She said the Federal Government tearing up Victoria’s Belt and Road agreement with China was the most recent and significant incident which Beijing was likely responding to.

“It’s fairly bleak at the moment. We’re not likely to see a positive shift any time soon,” Professor Byrne said.

“What is seen as China’s assertive behaviour in a number of worrying spheres is concerning for a number of countries, including Australia.

“In recent months, Australia has been looking to like-minded partners and other countries in order to push back against what is seen to be increased Chinese assertiveness, if not aggression.”

She said without a mechanism for dialogue, it increased the risk of misunderstandings or miscalculation between the two countries.

Trade Minister Dan Tehan says it was disappointing to hear of the decision. Picture: Nicole Cleary/NCA NewsWire

Trade Minister Dan Tehan said it was disappointing to hear that the NDRC had made the decision.

“The Strategic Economic Dialogue, which was last held in 2017, is an important forum for Australia and China to work through issues relevant to our economic partnership,” he said.
“We remain open to holding the dialogue and engaging at the Ministerial level.”

Tensions between China and the US, as well as the EU and Australia, is being seen by some as an emerging strategic competition between democracy and autocracy.