Beijing (AFP)

Beijing on Thursday suspended economic talks with Australia, a largely symbolic move after Canberra canceled last month an agreement on China's major "New Silk Roads" project.

Tensions between the two countries have continued to grow since 2018 due to disputes over a growing number of subjects, from 5G technology to accusations of espionage, via Hong Kong or the origins of the coronavirus.

In this already tense context, the Australian federal government announced at the end of April that it was terminating an agreement signed by the State of Victoria (south-east of Australia) to join the "New Silk Roads".

A decision then seen by Beijing as "a provocation".

Launched in 2013 at the initiative of Chinese President Xi Jinping, this project aims in particular to improve trade links between Asia, Europe, Africa and even beyond by the construction of ports, railways, d 'airports or industrial parks.

Amid tensions with China, Canberra passed new laws last year that make it possible to annul any agreement between representatives of an Australian state and third countries, and considered threatening the national interest.

The agreement on the "New Silk Roads" project is the first to be revoked, critics seeing it as a way for China to increase its political and economic influence.

Beijing waited until Thursday to respond.

- 'Real concern' -

Its powerful planning agency (NDRC) said in a statement to suspend the "China-Australia Strategic Economic Dialogue" and "all activities" "indefinitely".

This Dialogue is a mechanism created in 2014 to promote investment and strengthen economic ties between Australia and China, its largest trading partner.

Canberra "seeks to disrupt normal trade and cooperation with China through a Cold War mentality and ideological discrimination," blasted the NDRC, without however explicitly mentioning the "New Silk Roads".

The Australian Minister of Commerce, Dan Tehan, found the Beijing decision "disappointing" in the aftermath.

However, he relativized the scope, explaining that China and Australia had not had discussions since 2017 as part of their Economic Dialogue.

"It is above all a symbolic gesture" which will "have no impact" on trade, notes AFP James Laurenceson, director of the Institute of China-Australia relations at the University of Sydney Technology.

The suspension of talks between the two countries is, however, "a real concern," said Laurenceson.

- 'Moderate response' -

Bilateral relations began to deteriorate in 2018, when Australia excluded Chinese telecoms giant Huawei from building its 5G network, in the name of national security.

They were further strained when Canberra joined Washington last year to demand an international investigation into the origins of the coronavirus, angering Beijing, which sees the request as politically motivated.

Australia has also blamed China for its repressive policies towards the pro-democracy opposition in Hong Kong and the arrest of two Australian citizens suspected of spying or endangering national security.

On this point, Canberra said Monday that it could reverse the 99-year lease awarded to a Chinese company for the port of Darwin.

Located on the north coast of Australia, this port, the closest to Asia, also serves as a base for the US military.

Beijing has taken in recent months a whole series of economic retaliatory measures against a dozen Australian products, including barley, beef and wine, the prices of which have doubled or even tripled since March.

China opted Thursday for a "moderate response" not to "exacerbate tensions", Judge Laurenceson.

If this had been the case, Beijing "would have chosen the nuclear option" by withdrawing from the China-Australia free trade agreement, he believes.

burx-sbr / bar / clp /

© 2021 AFP