Former Governor of Victoria Brumbe says diplomatic tensions between Canberra and Beijing need to be resolved, or the Australian economy could face long-term damage if the United States and China finally resolve their economic and strategic differences. Then Australia risks being isolated.
The trade war between the United States and China has raged after President Trump announced a 50 billion-yuan import tariff on China. Brenby, chairman of Australia`s China Business Council, said companies believed the trade war between the world`s top two economies would be reconciled, which would bring substantial profits to U.S. companies but hurt Australian rivals.
"I think there is a general view that the United States and China will agree in some way, and they must agree that they are the two largest economies in the world, and I think their leaders understand that. In order for the world economy to perform well, the two economies need to coexist. " Brenby told Fairfax Media.
"there is growing concern that if there is a reconciliation between the two countries, who may lose? Obviously, we don`t want this to be Australia. I think it`s all the more important that the Australian government tries to reconcile the current differences with China and find a way forward on conditions of mutual benefit and respect. "
Tan Bao, Foreign Minister Bi Xiaopu and other lawmakers will attend the annual event of the Australian Council of Commerce and Industry (Australia China Business Council) in the Capitol on Tuesday, which will also be attended by Cheng Jingye, China`s ambassador to Australia.
Cheng Jingye has lashed out at Australian media coverage of the Communist Party`s political influence in Australia, calling it "groundless" and intended to trigger "China panic".
As bilateral tensions deepened, Australian officials ran into trouble arranging visits to China and meeting with Chinese officials, while Australian wine companies` products were stuck at Chinese customs and some journalists were refused visas.
Tan Baohe and Bi Xiaopu last visited China in 2016. Since then, they met with Prime Minister Li Keqiang and Foreign Minister Wang Yi in Canberra and the Global Summit respectively. They are expected to visit China later this year.
Brenby said that the exchange is an opportunity for enterprises and representatives of the two countries to talk. He said his biggest concern-not just the specific barriers to trade and diplomacy currently being experienced-is that the Chinese sense of hostility in Australia has reached "unsettling" levels.
Asked if the Chinese government itself could do anything to improve bilateral relations, Brenby said he should not answer this, but suggested that the two governments need to hold high-level meetings to identify problems and try to resolve them.
He said economic relations with China, which currently have bilateral trade of 183 billion yuan, will become increasingly important to maintain the standard of living of Australians.
If Huawei, the Chinese telecoms giant, is banned from supplying technology to Australia`s 5G network because of national security concerns, any push to repair the relationship could be thwarted. Huawei is reportedly likely to be banned. Brenby, director of Huawei`s Australian board, declined to comment on the matter.
