Beijing relations still a challenge

The Albanese government is right to balance its desire for rapprochement with the Chinese Communist Party with a realistic appraisal of what is at stake and how the relationship must be managed. Trade and human rights remain fundamental to our values and national interest, and we share the concerns of our closest allies about Beijing’s long-term strategic interests. Greater integration into global security organisations such as NATO and strengthened defence arrangements with the US and Britain through the AUKUS nuclear submarine deal reflect the extent of international concerns about China’s new assertiveness under Xi Jinping.

Our political leaders must pay close attention to the findings of an investigation by the UK parliament’s Intelligence and Security Committee, released this week. It found Britain faced a “nightmare scenario” of China controlling sensitive national infrastructure, including nuclear power stations, universities and the technology sector. Many of the conditions that have raised alarm in Britain also are present in Australia. This will become more the case as we rely on China to supply much of the hardware necessary to undertake the transformation to a lower greenhouse gas emissions power sector. The nightmare scenario outlined in Britain is one in which China “steals blueprints, sets standards and builds products, exerting political and economic influence at every step”.

The ISC said this had the potential to pose “an existential threat to liberal democratic systems”. It said China had gained a strategic advantage, buying up and seeking to control and influence Britain’s industry and energy sectors. A key factor in China’s quest to become a global superpower was the economic advantage brought by significant investment in civil nuclear power. British intelligence agencies have warned that Beijing could hold the UK’s electricity grid “to ransom”.

The CCP has been able to reach this level of influence because of governments’ willingness to allow economic interests to trump serious security issues. Australia was quicker to recognise the potential threat posed by Chinese investment. This was evident in the Turnbull government’s decision to block bidders from China for Australia’s largest electricity network, to bring in foreign interference laws that kept Chinese influence at bay and to keep Huawei out of the 5G network. China responded to Australia asserting its sovereign rights with trade sanctions and overt diplomatic pressure that reached a height after the Morrison government called for a proper investigation into the origins of the Covid-19 coronavirus.

The Albanese government has made a virtue of its attempts to re-establish fruitful trade and diplomatic relations with Beijing but it must continue to tread warily. Foreign Minister Penny Wong has reiterated Australia’s expectations towards China to remove more trade barriers and create “positive circumstances” regarding detained Australians before Anthony Albanese can lock in a visit to Beijing. Senator Wong made it clear in a meeting with top Chinese diplomat Wang Yi on the sidelines of the Association of Southeast Asian Nations meeting in Jakarta on Thursday that it was in both countries’ interests to stabilise the bilateral relationship and continue to engage in dialogue. Senator Wong said our expectations go beyond re-establishing trade to include the release of Australian nationals detained in China and a bounty placed on Australian resident citizens by Hong Kong police.

The Prime Minister raised the continued detention of Australian journalist Cheng Lei in the context of discussions for him to visit Beijing. The actions of Hong Kong police to target Australian citizens have further complicated the discussions. Acting opposition foreign affairs spokesman James Paterson said China had committed an “extraordinary overreach” by issuing the bounties. He said he was concerned by the prospect of Mr Albanese “smiling and shaking hands” with Chinese President Xi as if nothing had happened.

Senator Wong has publicly raised our deep concerns. She is correct to say that Australian people and the Australian government treasure freedom of political expression. The Albanese government is right to continue its efforts to re-establish high-level talks and good relations with our major trading partner. But it cannot be at any price. The government must continue to defend our values and not make the mistake of exchanging short-term gains in trade for long-term difficulties of the sort that are now being openly debated in other liberal democracies.