China suspends economic deal with Australia

China announced on Thursday the suspension of part of its economic cooperation with Australia.

Australia "seeks to disrupt normal trade and cooperation with China through a Cold War mentality and ideological discrimination," the powerful Chinese planning agency (NDRC) blasted in a statement.

AP - Andy Wong

Text by: RFI Follow

3 min

China announced this Thursday, May 6 the suspension of part of its economic cooperation with Australia, against a backdrop of serious tensions with Canberra, which announced last month that it wanted to revoke an agreement concerning the "New Silk Roads".

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Australia " 

seeks to disrupt normal trade and cooperation with China through a Cold War mentality and ideological discrimination

 ," the powerful Chinese planning agency (NDRC) blasted in a statement.

Beijing has decided to indefinitely suspend the " 

Sino-Australian strategic economic dialogue

" and "

all activities 

" related to it, according to the statement.

Australian Trade Minister Dan Tehan said

 Beijing's decision to suspend part of its economic cooperation with Australia

was " 

disappointing

", while saying Canberra remained open to dialogue despite the tensions.

Dan Tehan said the 

 frozen "

China-Australia Strategic Economic Dialogue

" was an " 

important forum 

" for the two countries to work on various issues, but said no such discussions have taken place since 2017. .

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.

Australia's withdrawal from the "New Silk Roads" project

In this already tense context, the Australian federal government announced last month that it was terminating an agreement signed by the state of Victoria, in south-eastern Australia, to join the

"New Silk Roads"

.

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

Beijing then denounced an "

 unreasonable and provocative measure

 " taken by Canberra.

Beijing's economic retaliatory measures

Relations between Beijing and Canberra have been particularly strained since Australian Prime Minister Scott Morrison last year called for an international investigation into the origins of the Covid-19 epidemic.

China, the first country affected by the pandemic, considers this request to be hostile and politically motivated.

Result: Beijing last year took a series of economic retaliatory measures against more than a dozen Australian products, including barley, beef and wine.

In the midst of tension with China, Canberra passed new laws last year allowing, among other things, the annulment of any agreement, considered to represent a threat to the national interest, between representatives of an Australian state and third countries.

According to the Australian Constitution, the Federal Government is responsible for Foreign Affairs and Defense and the States and Territories are responsible for areas such as Health and Education.

To read

: New renewed tension between China and Australia

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