Morrison government accused of not responding to China: Labor

Australia has failed to develop a plan on how to deal with a ‘more assertive China’, and business is paying the price, the opposition says.

Australia’s needs an urgent plan to deal with a more assertive China, opposition treasury spokesman Jim Chalmers warns.

Several industries have been hit with trade restrictions and been urged to diversify away from China as tensions between Australia and its largest trading partner hit new lows over the past year.

Speaking at the National Press Club on Wednesday, Dr Chalmers said business owners raised China “every time” he spoke to them.

“I am incredibly concerned about it, as is the business community,” Dr Chalmers said.

“There are costs and consequences for our exporters and for all the people that they employ.

“Our critique of the government in this regard is that they have failed to plan for a more assertive China.”

Opposition treasury spokesman Jim Chalmers. Picture: NCA NewsWire/Gary Ramage

Dr Chalmers said the Labor Party was concerned the government did not have a strategy to deal with the complex, difficult and evolving relationship.

“The difference between us and the government when it comes to managing a more assertive China is going about it in a more calm, and considered and purposeful and way,” he said.

“And even the Prime Minister’s friends don’t describe him in those terms.

“Our concern is that we are not responding.”

Labor has previously called on the Morrison government to tone down its language about China’s moves on Taiwan.

Beijing last week fired a warning shot at Australia, saying it should prepare to fend off Chinese missiles as tensions flared between the two nations.

The threat follows Scott Morrison saying it would be “foolish” not to appreciate the potential risk of military conflict with China over Taiwan.

US Secretary of State Antony Blinken has also vowed to back Australia as tensions with China escalate, saying the country “will not leave Australia alone on the field”.