China ‘indefinitely suspends’ economic talks with Australia

Chinese-Australian relations have soured further after the major Asian nation ‘indefinitely’ suspended economic talks.

China has suspended economic talks with Australia.

In a statement on Thursday, the Chinese National Development and Reform Commission said it would “indefinitely suspend” all activities under the China-Australia Strategic Economic Dialogue.

“Based on the current attitude of the Australian commonwealth government toward China-Australia co-operation, the National Development and Reform Commission of the People’s Republic of China decides to indefinitely suspend all activities under the framework of the China-Australia Strategic Economic Dialogue,” the NDRC said.

“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.”

Trade minister Dan Tehan said the decision by the Chinese was “disappointing” but the government would remain open for negotiations.

“It is disappointing to hear that the NDRC has made this decision,” Mr Tehan said.

Trade minister Dan Tehan said the decision was ‘disappointing’. Picture: NCA NewsWire/Nicole Cleary

“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.

“We remain open to holding the dialogue and engaging at the ministerial level.”

It is the first move by Beijing since the Morrison government decided in April to veto Victoria’s Belt and Road agreement with China.

The federal government has also announced it would examine whether the lease of the Darwin Port to a Chinese company should be abolished due to national security concerns.

China’s move casts doubt over existing free trade agreements between Australia and China.

It is also another blow to a swath of industries that have been hit by trade tariffs, including wine, agriculture and resources.

The export market to China has been slapped with sanctions after Australia’s call for a global investigation into the origins of the coronavirus pandemic.

Beijing has previously said Australian producers had been “dumping” exports into the Chinese market.