Twiggy warns against paranoia over China as relationship falters

Deteriorating relations between Australia and China have prompted a remarkable intervention from billionaire Andrew Forrest

Fortescue Metals Group founder and chairman Andrew Forrest.

A sharp deterioration in relations between Australia and China has prompted a remarkable intervention from billionaire Andrew Forrest, with the mining magnate launching an impassioned defence of China and slamming the “paranoia” that has infiltrated Australian attitudes towards our largest trading partner.

Speaking at an Australia-China Business Council dinner in Perth on Thursday night to mark the Lunar New Year, the Fortescue Metals Group founder described 2017 as the “annus horribilis” for Australia’s relationship with its northern neighbour.

The Fortescue Metals Group founder and chairman said China was an ally that had been neglected in recent times as Australia lost sight of its long-term national interests and indulged in “immature commentary”.

“Much of the current Australian debate fuels distrust, paranoia and a loss of respect,” he said.

“This has to stop.”

His concerns were echoed by the Western Australian president of ACBC and Minter Ellison partner Adam Handley, who said he “had never been more worried” about the relationship between the two countries.

“We need to pause and take our next step very carefully,” Mr Handley said.

“We need China more than China needs us and we have to be very conscious of that.”

Australia’s relationship with China — our biggest trading partner and the dominant customer of Mr Forrest’s iron ore miner Fortescue — has become increasingly tense in recent months.

The week, The Australian revealed recent moves by China to stall Australian ministerial visits and defer a trip by our top diplomat as part of an attempt to pressure Malcolm Turnbull over new foreign interference laws and maritime boundary disputes in the South China Sea.

The Weekend Australian understands that there was significant uncertainty over whether China’s Consul General to Perth, Lei Kezhong, would attend this year’s dinner, with the presence of senior Chinese diplomatic officials at events around the country under a similar cloud.

Mr Lei ultimately attended this week’s dinner and called for a reduction in “suspicions and prejudices”.

“Both sides should treasure this relationship, which has not come by easily, and we should never take it for granted,” he said.

“It is always important for us to bear in mind the spirit of mutual respect and mutual benefit.”

The relationship between Australia and China has come under strain following greater scrutiny of Chinese political donations, tightening Foreign Investment Review Board measures and simmering tensions over China’s growing presence in the South China Sea.

Mr Forrest said Australia and China had a long and at times forgotten history of working together not just economically but also militarily, recalling the co-operation between the two countries during the World Wars I and II. “We have listened too much to immature alarmists and not enough to each other. We have neglected the nourishment of our greatest friendship — China and Australia must nourish that friendship,” he said.

“I ask Australians to stand with me and respect and celebrate the Chinese community’s deep roots in Australia, and the vital role China has played in the strength and cultural richness of Australia.

“Our shared experiences, through some of the worst horrors in history, are far more meaningful than differences in tradition or our political systems,” he said.