(Rohan Smith’s article from the NEWS.COM Australia on 23 December 2020)
The provincial capital of Hunan and home to more
than 7 million people is without street lights, too. Lifts have been switched
off, forcing workers to scale dozens of flights of stairs to the office in the
bitter cold. In Yiwu, a city of 1.2 million in China’s fareast, factories have
slashed working hours by up to 80 per cent. When workers leave at night, the
streets are dark.
The problem is two-fold. The first part of the problem is that China has emerged from the worst of COVID-19 relying heavily on electricity to fuel work through the winter which, in many parts, features temperatures below zero. The second part of the problem is that China banned Australian coal.
The decision by
Beijing in mid-December followed a months-long feud that has seen China ban
exports from seafood to wine and timber. It is linked to a list of 14
grievances China filed with Australia. At the top of the list is the Morrison
Government’s calls for an independent inquiry into the origins of the
coronavirus which emerged from Wuhan in early 2020 and spread worldwide.
China viewed
Australia’s stance as an insult and took action. President Xi Jinping has not
spoken with Prime Minister Scott Morrison since, despite repeated attempts by
Australia to end the tense stand-off. But as China enters a harsh winter, there
might also be pressure from within.
The Financial
Times reports dozens of Chinese cities and at least four provinces have imposed
rules on electricity use that include residents and businesses cutting how much
power they use. One of China’s largest energy groups told the publication: “The
import curb is enough to change the industry landscape.”
>“Many local
power plants depend on Australian coal due to its higher efficiency and now
they are having trouble finding an alternative,” said the director of China
Huadian Corporation. The New York Times reports the ban on Australian coal is
having an unexpected impact as the relationship between the two countries goes
“into free-fall”.
“Australia has, among other things, demanded an
investigation into the origins of the coronavirus, which first emerged in
China. China in turn has banned imports of Australian coal – leaving huge ships
stranded at sea,” the Times reports.
China denies the
situation is being exacerbated by a ban on Australian coal but a Chinese energy
insider told The Australian: “You cannot pretend that bad relations between
China and Australia haven’t contributed to this situation.”
The South China
Morning Post also reports that coal prices have “skyrocketed since October to a
level not seen since May last year”, with a spokeswoman from China’s National
Reform Development Commission stating that: “We have noticed coal prices have
risen recently and that has caused widespread concern in society.”
Timeline: Australia
v China 2020
Jan 29, 2020: 5G
fears
Australia joins
criticism of the UK for letting Huawei work on its 5G network. Ex-Australian
Signals Directorate head Simeon Gilding says: “The ability to compel Chinese
vendors of 5G equipment is a strategic capability for China’s intelligence
services.” Australia banned Huawei from 5G in 2018.
Timeline, Australia
v China 2020:
Jan 30, 2020: Coronavirus
WHO declares a
global health emergency as the coronavirus spreads across the world, after
first being reported in Wuhan in December. In Australia, where there are nine
cases, there are reports of racist attacks against Asian-Australians.
Feb 14, 2020: COVID
clash
Australia
extends a ban on foreign nationals travelling from mainland China first imposed
on February 1 because of COVID-19. The Chinese Embassy in Canberra slams the
“overreaction” and urges Australia to lift restrictions “as early as possible”.
>Mar 29, 2020: Rule
change
The Government
announces temporary changes to the foreign investment review framework that
protects Australia’s national interest. Media reports relate the move to China,
although no country is named. It follows reports of medical supplies being
sourced and shipped in bulk from Australia to China.
Apr 19, 2020: Australia
stands up
Foreign Minister
Marise Payne takes the international lead in calling for a global inquiry into
the origins of the coronavirus pandemic, including China's handling of the
initial outbreak in the city of Wuhan.
Apr 28, 2020: Boycott
threat
Chinese
Ambassador to Australia Jingye Cheng suggests the Chinese public may boycott
Australian products or decide not to visit Australia if the Government
continues its push for an independent inquiry. Trade Minister Simon Birmingham
labels the remarks "economic coercion".
May 12, 2020: Beef
ban
China places an
import ban on four Australian abattoirs citing health labelling infringements
on beef products. The four meatworks represent 35 per cent of Australia's $3.5
billion beef export trade to China.
May 18, 2020: Financial
hit
Beijing imposes
a massive 80 per cent tariff on Australian barley imports, saying the product
has been imported against trade rules. The tax will stay for five years, and is
expected to wipe out Australian sales - worth up to $1.5 billion a year - into
China.
May 19, 2020: War
of words
China says it is
a "joke" for Australia to claim it has been vindicated by
international support for a coronavirus inquiry after a European Union motion
at the World Health Assembly (WHA) supported the move.
Jun 6, 2020: 'Travel
risk'
China's Ministry
of Culture and Tourism urges people not to travel to Australia, citing a
"significant increase" in racist attacks in the wake of COVID-19.
Trade Minister Simon Birmingham says Beijing's claims are false and have
"no basis in fact".
Jun 10, 2020: Sentencing
shock
Australian Karm
Gilespie is sentenced to death for drug smuggling after being arrested at
Guangzhou airport in 2013 with 7.5kg of methamphetamine. Australian officials
have raised his case with Chinese counterparts, but there are fears the
56-year-old has become a pawn.
Jun 16, 2020: Deceptive
conduct
Foreign Affairs
Minister Marise Payne warns “disinformation” is being spread by China and
Russia online to undermine western democracies during the coronavirus pandemic.
Jun 30, 2020: Chinese
crackdown
China passes a
tough new national security law for Hong Kong, seen as curbing the city’s
freedoms and undermining the “One Country, Two Systems” principle. Australia
joins the international community in raising “deep and growing concerns”.
Jul 1, 2020: Show
of force
Prime Minister
Scott Morrison announces a major increase in defence spending and a new
military focus on our region, saying “we want an open, sovereign Indo-Pacific,
free from coercion and hegemony”.
Jul 7, 2020: New
risk
The Government
issues a new warning on travel to China, saying Australians may face “arbitrary
detention”. Australians in China who are considering returning home are told to
“do so as soon as possible”. China responds by saying Australians have nothing
to fear if they obey the law.
Jul 9, 2020: Safe
haven
Australia
suspends Australia’s extradition treaty with Hong Kong and makes visa changes
to allow workers and students to extend their stay in Australia, including
pathways to citizenship.
Jul 13, 2020: China
hits back
China’s Ministry
of Foreign Affairs upgrades its travel advice for citizens, saying Australian
“law enforcement authorities arbitrarily search Chinese citizens and seize
their items”.
Jul 29, 2020: Balancing
act
At a meeting
with Foreign Minister Marise Payne, US Secretary of State Mike Pompeo praises
Australia's stand against "coercive pressure from the Chinese Communist
Party". Payne talks of shared goals to protect rule of law in the South
China Sea, but says relations with Beijing are also important.
Aug 18, 2020: Wine
woes
China launches
an anti-dumping probe into Australian wine exports, making good on earlier
threats to the sector. Trade Minister Simon Birmingham says our wine is highly
sought after in China because of its quality. “Australian wine is not sold at
below market prices and exports are not subsidised.”
Aug 26, 2020: Provocative
speech
Wang Xining,
Beijing’s deputy ambassador in Canberra, gives a speech calling Australia
treacherous and disrespectful, and says its actions on COVID-19 "hurt the
feelings of the Chinese people".
Aug 27, 2020: End
of the road
New laws are
announced to block undue Chinese influence over Australia, allowing the federal
government to veto controversial agreements with foreign nations. The move
threatens Victoria's controversial Belt and Road Initiative agreement, but also
deals involving unis and local councils.
Aug 31, 2020: Trading
blows
China hits
Australian winemakers again, launching a second investigation into the $1.07
billion trade to determine if the industry unfairly benefits from up to 40
government subsidies.
Aug 31, 2020: Shock
detention
Foreign Minister
Marise Payne reveals an Australian journalist working for China Global
Television Network, Cheng Lei, has been detained in China for more than two
weeks. Although she hasn't been charged, under Chinese rules she can be held
for six months.
Sep 8, 2020: New
warnings
The Government
reiterates the risk of "arbitrary detention" for Australians in China
after two journalists - the ABC's Bill Birtles and the AFR's Michael Smith -
are rushed to safety. They spent days sheltering in diplomatic compounds after
local police demanded interviews with them.
Sep 14, 2020: 'Information
warfare'
More than 35,000
Australians, from singer Natalie Imbruglia to billionaire businessman Mike
Cannon-Brookes, are revealed as targets for Chinese espionage after a database
of names, addresses, and personal details is leaked.
Sep 15, 2020: New
target
Another farming
sector is dragged into Beijing's attacks on trade, with reports China’s General
Administration of Customs will apply “enhanced inspection” efforts on shipments
of Australian wheat. Shipments already sold to China for December and January
are worth approximately $250 million.
Oct 13, 2020: Firing
up again
Trade Minister
Simon Birmingham says the Government has contacted China through diplomatic
channels over reports Chinese customs authorities had told companies to stop
importing Australian coal - a move threatening $14 billion a year in exports.
Nov 6, 2020: Grim
warning for exporters
The Australian
reports government officials had advised China-exposed businesses in Australia
to “find other markets”, as reports in a Chinese state-controlled tabloid
appeared to confirm unprecedented bans on Australian wine, lobster, copper,
sugar, timber and coal.
Nov 18, 2020: Olive
branch snaps
>Treasurer Josh
Frydenberg offers an olive branch, saying Australia is ready to re-engage in
“respectful and beneficial” dialogue with Beijing, but China responds by
releasing a list of grievances. "China is angry. If you make China the
enemy, China will be the enemy," one official says.
Nov 27, 2020: Coal
halt
The Australian
reveals coal exports to China have plunged by 96 per cent in the first three
weeks of November amid a go-slow by Chinese officials. More than 80 ships with
cargo worth $1.1bn are stuck off the Chinese coast.
Nov 27, 2020: Winemakers
'guilty'
The Chinese
Ministry of Commerce says Australian winemakers have been found guilty of
dumping wine in China and harming its local industry. Tariffs of between 107%
and 212% are imposed, with Trade Minister Simon Birmingham saying they make the
Chinese market "largely unmarketable, unviable".
Nov 30, 2020: Fake
photo outrage
PM Scott
Morrison calls for an official apology after Chinese foreign ministry spokesman
Zhao Lijian tweets a mocked-up picture of an Australian soldier about to kill a
child holding a lamb. He also asks Twitter to remove the tweet, which he calls
“an absolute outrageous and disgusting slur”.
Dec 10, 2020: Beijing's new targets
After China
targets timber exports and more beef suppliers, cotton and wheat farmers are
warned they are likely to be next in line, taking the total of Australian
agricultural goods banned, disrupted by customs or hit by tariffs to more than
$7 billion.
Dec 15, 2020: Out
in the cold
News emerges
that Beijing has formalised its black-listing of Australia’s $14 billion coal export
industry at a high-level meeting. Meanwhile, The Australian reports ASIO is
investigating after it revealed Chinese Communist Party members had infiltrated
Western embassies, including Australia’s.
Speaking with
news.com.au earlier this month, Professor James Laurenceson, the director of
the Australia-China Relations Institute at UTS, touched on the current
predicament facing China and said the more restrictions that were imposed, the
more Beijing risked hurting its own interest.
“For example,
iron ore would hurt Australia the most, but if China hit that, it would shoot
itself in the foot even more,” he said at the time. Dr Pradeep Taneja, who
lectures at the University of Melbourne on Chinese politics and international
relations, told the ABC last month that China knows exactly what it is doing
and that more blockades were likely to follow.
“China’s
strategy is to target suppliers from Australia who are then going to make a bit
of noise and it is going to stay in the news,” he said. “I think Australia has
been quite restrained. We haven’t seen any retaliation from Australia. We don’t
have a trade war because it is one-sided. At the end of the day there has to be
some sort of breakthrough.”
Relations
reached an all-time low in late November when a Chinese government official
published a doctored photo showing an Australian soldier killing an Afghan
child. The picture was used to shame Australia after a damning report alleged
Australians had committed war crimes in Afghanistan.
Mr Morrison
demanded an apology from Beijing, but none was forthcoming. The Global Times,
one of China’s most outspoken state media publications, wrote that China’s
relationship with Australia was worsening.
“Australia has repeatedly used wrong words and deeds on issues involving China’s core interests and major concerns, which is widely regarded as the root cause of the relationship falling to its lowest point,” it wrote.
