Business counts the fallout from Clive Palmer China tantrum

BUSINESS leader Kevin Li believes Clive Palmer’s racist outburst could hurt Australia’s ability to compete with the rest of the world in China.

‘This certainly does not help the free-trade negotiations’: Kevin Li in Guangzhou yesterday.

LONG-serving business leader Kevin Li believes Clive Palmer’s racist outburst could hurt Australia’s ability to compete with the rest of the world to benefit from China’s future economic growth and international development.

Mr Li, the head of the Australian Chamber of Commerce in Guangzhou, said a number of small to medium Chinese businesses that deal with Australia had called him concerned since Mr Palmer said the Chinese were “mongrels” who “shot their own people”.

Mr Palmer backed away from the rant yesterday, claiming his criticism was directed at Citic Pac­ific, the Chinese mining company that operates the Sino Iron Ore project with his Mineralogy.

However, Mr Li said the outburst could have long-term impacts on the trading relationship between Australia and China.

“Clive Palmer’s comments are abusive and damaging to the image of Australia as a proud, multicultural nation,” he told The Australian.

“Commercial disputes should be settled by legal means.

“The comments hurt many Australian people who have worked hard for a long time to ­develop Australian business ­opportunities with China, which is the second-largest economy in the world and Australia’s largest trading partner.”

Two-way trade between Australia and China is worth almost $161 billion a year, and is dominated by commodities. China is now the fastest-growing inbound tourism market for Australia, which attracted more than 709,000 Chinese tourists last year.

State-backed media seized on Mr Palmer’s comments yesterday, labelling him a “hooligan” and calling for the Chinese government to place sanctions on him and Australian companies that dealt with his business operations.

Mr Li said there could be repercussions from Mr Palmer’s comments in the next round of talks for a free-trade agreement, due to be finalised by the end of the year.

“(This) certainly does not help the current FTA negotiations between the two countries,” he said.

“Australia is actually competing against many other countries i n respect to doing business with China.” Mr Li said while it was a positive that Mr Palmer claimed he did not mean to offend Chinese people yesterday, the potential damage to the business and diplomatic relationship between the two countries had been set.

“Clive Palmer is not an ordin­ary businessman or ordinary individual, he is a politician, so the perception here is different,” he said.

“Statements from politicians should be constructive rather than destructive. It (apology) is better than nothing but the damage is already there.”

The Global Times, a nationalistic tabloid, featured Mr Palmer on its Chinese-language edition that sells two million copies a day. The headline read, “Australian magnate abused China and damned unanimously by politicians: accuses Chinese government of stealing Australian resources, highlighting the complex attitude of Australia”. In an editorial, it said Mr Palmer and companies associated with his business operations should face sanctions by Beijing.

The Chinese-language version of the editorial was much harsher on Mr Palmer than an online, Eng­lish version.

“Mr Palmer’s theories are ridiculous nonsense which have been criticised by all sides of Australia,” the Chinese paper said.

The English version said China needed to “punish” the maverick politician. “China should consider imposing sanctions on Palmer and his companies, cutting off all business contacts with him and forbidding him and his senior executives into China,” it said.

Additional reporting: Wang Yuanyuan