China’s threats against Australia have limited results: USCC

The threats from the Communist Party of China against Australia have had limited effect and, in some cases, have proven counterproductive to Beijing’s goals, stated a report by the United States-China Commission (USCC).

After China restricted certain Australian exports in 2020, Australian sellers were generally able to divert their products to other markets.

Between the end of 2020 and April 2021, exports of affected goods fell in annualized terms by $ 10 billion to China, but increased by $ 14 billion to other markets, including Saudi Arabia and India.

In that context, according to the USCC, Roland Rajah, director of the International Economics Program at the Lowy Institute in Australia, commented in April 2021 that “the most remarkable aspect of the experience so far is how ineffective the commercial coercion attempt has been. from China”.

In practice, it appears that China’s high-profile trade attacks have failed to induce countries to change their policies to the liking of the Communist Party of China.


On the contrary, the USCC added, China’s economic coercion has contributed to a growing reaction among its economic partners.

In March 2021, US Secretary of State Antony Blinken said during a visit to Tokyo: “We will roll back, if necessary, when China uses coercion and aggression to get its way.”

The USCC indicated that countries can respond in ways that harm China’s economic interests.

In April, Australian Foreign Minister Marise Payne announced the cancellation of two contracts that the state of Victoria had signed in 2018 and 2019 to participate in the Belt and Road Initiative, saying the agreements were “inconsistent with policy. outside of Australia or adverse to our foreign relations. ”

In August, Australian Prime Minister Scott Morrison proposed a strategic economic dialogue with the United States to help guard against “economic coercion.”

Finally, In September, Australia, the United States and the United Kingdom jointly announced the formation of a security pact, known as AUKUS, as well as an agreement under which Australia would receive access to technology for nuclear-powered submarines.


Redacción Opportimes

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