Business concerns over anti-China rhetoric from politicians

At the Melbourne Mining Club this week, BHP chief executive Andrew Mackenzie talked about the importance of combining “the best of east and west”.

He said Australia would do best if it fostered a culture of inquiry, ideas and innovation where “the dynamism and longer-term thinking of the China and eastern model was combined with the diversity and debate of the western model”.

“The security and prosperity of economies, communities and countries demands east and west work together freely and innovatively, with respect for all who contribute to shared progress,” he said.

“We have to mesh the best of our cultures together to drive globalisation forward.”

The carefully worded comments from one of Australia’s top corporate leaders, urging Australia to continue to work constructively with China, come amid rising concern in corporate Australia about increasing anti-China rhetoric in political and other circles. While Australian business leaders continue to engage actively with China, by far Australia’s largest trading partner, there has been a growing concern whether increasingly heated political debate could harm hard-fought long-term business ties.

Australian business has become one of the most active advocates for engaging positively with the world’s second-largest economy. But the desire of business to work with China and to understand its complexities are hitting up against increasingly shrill political rhetoric.

Yesterday’s comments from the Chinese embassy in Canberra follow months of privately expressed concern from Chinese diplomats in Australia about increasing relationship tensions.

The diplomats see the strains arising from comments made here which they say depict China as a threat to Australia.

“Some Australian politicians and officials” have made “irresponsible remarks to the detriment of political mutual trust between China and Australia” diplomats said. “China has no intention to interfere in Australia’s internal affairs or exert influence on its political process through political donations,” it said.

“We urge the Australian side to look at China and China-Australian relations in an objective, fair and rational way.” The blunt public statement shows an embassy concerned at what it sees as a barrage of anti-Chinese sentiment from a country that professes to want to do more business with it and its citizens. Yesterday’s statement of exasperation from the Chinese was not made lightly and crosses an important line.

Business leaders are always reluctant to become involved in the political debate, particularly when it involves China. But yesterday’s comments will be a stark reminder to business leaders that politics may now be in danger of damaging what until now has been a thriving business and trade relationship.