General

Australia recently announced the cancellation of two infrastructure agreements with China as part of China’s multi-billion-dollar"One Belt One Road"initiative,which involves building ports in dozens of countries/regions from the South Pacific to Asia to Europe.Railroads and other facilities to expand trade.

The"One Belt One Road"initiative is part of China's vision for future economic growth,aiming to establish a new trade corridor between Europe and Asia along the long-standing Silk Road.

These agreements were signed in 2018 and 2019,but Australia has enacted new laws that allow national leaders to intervene.

This decision has undoubtedly increased trade and diplomatic tensions between China and Australia.

After being asked if China expected a"serious reaction",Australia's Home Affairs Minister Peter Dutton said,

"Like China,we exercise sovereignty.As a proud country,we will not undermine our policies,principles and values.We will not be bullied by anyone,and we will defend our beliefs."

In this regard,our country said,

"The Australian Federal Government has vetoed the trade agreement."There is no sufficient reason to wantonly undermine the normal exchanges and cooperation between the two countries and seriously undermine bilateral relations and mutual trust.China reserves the right to make further responses to this matter.We urge Australia to shelve Cold War mentality and ideological prejudice."

However,the United States will certainly not miss this good opportunity to discredit China.It is reported that the United States also expressed solidarity with Australia on Thursday,saying that it has suffered from China's"coercive"diplomacy!

U.S.State Department spokesperson Ned Price(Ned Price)said that Australia has made its own decision,but Australia has“incurred huge losses”due to the actions taken by China,and we will continue to stand with Australia.

Under the leadership of Biden and Trump,the global competition between the United States and China has intensified.In many aspects,including maritime military operations and overseas infrastructure construction,China's competition has become increasingly active.Therefore,the United States is biased against China.It is not surprising that digging pits to discredit frequently.

Last year,after Australia called for an investigation into the coronavirus,China restricted the import of Australian coal,beef,wine,lobster and other commodities last year due to the epidemic.Australia has been"having a grudge"and trying various counter-retaliations.

China is Australia’s largest foreign market,but the impact of the sanctions is limited.Chinese steel mills are still buying Australian iron ore,which is the country’s most valuable export commodity.

According to the Australian government last year,“By the second half of 2020,Australia’s exports to China will fall by 2%compared to the same period last year,but iron ore exports will fall by 40%.”

Overall,Chinese investment in Australia fell by 62%in 2020 to US$775 million.

Fitch Ratings stated in a report that the huge demand for iron ore in China’s steel industry may limit China’s“draft”further restrictions.Blocking imports will harm China’s employment and economic growth.Further penalties may be targeted at"smaller export categories."

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