As the international feud between Australia and China continues to escalate, a spokesperson from the Chinese Foreign Ministry demanded mutual respect from their diplomatic counterparts.
The conflict between the two countries was sparked by Australia’s strong stance on China’s responsibility over Covid-19. Australian Prime Minister Scott Morrison said that the international community should investigate the Chinese leadership’s management in the early stages of the pandemic.
Not surprisingly, the Chinese have refused such demands and denounced such efforts as political. As we have covered before in this article, the editor of a state owned media likened Australia to a gum stuck on the soles of China. This war of words have worsened since then.
In fact, many experts and companies in both countries fear that this feud may turn into a trade war between the two nations. The impact of such conflict would be felt around the globe as the global economy already suffers from the economic damages of the global pandemic that are becoming evident.
On Tuesday, China fired what may be perceived as the first bullet as it banned the import of Australian beef. This was followed by a subsequent 80% tariff on Australian barley. The Daily Mail reports that in 2017, Australia had exported $1.5 billion worth of barley to China.
Representatives of other industries met with government officials as they fear this trade conflict may easily spread to other sectors. For instance, representatives of Australian dairy farmers urged that the government step in and put an end to this conflict.
The Global Times – a state owned newspaper – wrote that China’s relationships with Australia are at a historic low. Outside experts believe that a trade war is already inevitable. Making things worse, this feud seems to be purely political revenge from Australia’s biggest trade partner.
From products such as wine to forbidding Chinese students to study in Australia, experts warn that there are many ways that the Chinese could take to try subjugating Australia.
For PM Morrison, that puts him between a rock and a tough place. By officially filing a complaint to the Chinese government after the Chinese ambassador to Australia implied a boycott, Morrison has made it clear that his cabinet will take a strong position against the Chinese.
At the same time, engaging in a mutually destructive trade war with the world’s second largest economy as the world prepares for an economic recession is a path no politician wants to take.
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Replaced!