Australia has absolutely rejected China’s latest attempt to join forces against US-imposed tariffs on Australian products. The White House’s use of a 10% import tax increased the turbulence in trade relations. As a result, in retaliation China increased its tariffs on Australian goods to an extraordinary 125%, adding yet another layer of economic turmoil.
Australian Trade Minister Don Farrell has been hands on with countries such as Japan, Singapore, South Korea, and India. His proclaimed aim is to do this by bolstering trade partnerships with such countries. China still is the outlier in not just Australia’s diplomatic overture. In an op-ed published Thursday, China’s ambassador to Australia, Xiao Qian, went there. Wang contended that the countries needed to come together to oppose the U.S. and to challenge its “hegemonic and bullying behavior.”
Additionally, Xiao Qian underscored the importance of Canberra’s involvement, remarking that working together is “the only way” to tackle these challenges. Despite such appeals, Australian officials have consistently reaffirmed their commitment to prioritizing national interests over aligning with China. Deputy Prime Minister Richard Marles stated, “It’s about pursuing Australia’s national interests, not about making common calls with China.”
Prime Minister Anthony Albanese acknowledged the significance of Australia’s trade relationship with China. He highlighted the need for diversification. He emphasized that “eighty percent of trade does not involve the United States,” suggesting that Australia will continue seeking opportunities outside its traditional partnerships.
In recent weeks, Australia’s debate has revolved around how to further reduce dependence on China to strengthen the economic resilience of the country. This shift is evident in Australia’s efforts to strengthen trade ties with Indonesia, India, the United Kingdom, and the United Arab Emirates.
Xiao Qian admonished the U.S. for “weaponizing” trade disputes. He cautioned that even a “soft, weak compromise” would give President Trump the green light to further rattle the international order, possibly leading to a “quagmire” and even an “abyss” for the global economy.
With tensions escalating, Australia is seeking to continue discussions with the White House on the tariffs imposed earlier this week. The government’s approach is a testament to the real strategic balancing act—protecting national interests while avoiding the so-called trade war with China.