Australia will wear economic cost of standing up to China: US Ambassador Arthur Sinodinos

Australia’s Ambassador to the US has warned Australia’s position on China means the nation faces ‘a bumpy time for a while’.

Arthur Sinodinos at the ambassador's residence in Washington. Picture: Mary Balzary

Australia’s Ambassador to the United States Arthur Sinodinos says Australia has shown it is prepared to wear the economic cost of standing up to China, warning the position means the nation faces “a bumpy time for a while”.

In a webinar with Harvard University’s Kennedy School, Mr Sinodinos said Australia was open to talking with China about problems in the bilateral relationship, “but it has got to be on terms which safeguard our national interest”.

“It can’t be a situation where we are being asked to essentially compromise our national interest to safeguard our economic interests,” Ambassador Sinodinos said.

“We cannot infringe our sovereignty in that way and it would not be a good example to the region either.

“That is why … I think we could be in for a bumpy time for a while.”

Australia’s trade relationship with China has deteriorated rapidly in recent times, with new trade barriers being imposed on Australian barley, beef and wine.

However, Australia’s biggest export to China – iron ore – is booming, with sales expected to pass $100bn this year.

Mr Sinodinos said it wasn’t that Australia believed China would not go elsewhere to get its iron ore, or took the view that it could act “with impunity” in relation to China.

Rather, he said Australia had taken actions based on principle.

“Now if that is coming at an economic cost, we have demonstrated a preparedness, at least to date, to wear that cost,” he said.

“It is a challenge if the cost continues to increase. But my question to people is, in those circumstances, what do you want us to do?

“Do you want us to rip up the foreign transparency scheme?

“Do you want us to take away the foreign investment rules which govern investments in national security or critical technology areas?

“Do we suddenly say ‘Yes, we will have Huawei or ZTE come into the 5G rollout?

“No self-respecting government can do that.”

Mr Sinodinos said Australia was also concerned that China’s Confucius Institutes in Australian universities were “conduits for teaching a party line”, and for “potentially victimising students who may hold a line that is not consistent with the party line”.