Australia at sea... Albo has got China all wrong

Judith Sloan I 8 March 2025 I Spectator Australia

We should probably be sending that Virgin pilot a thank-you note for letting us know that the Chinese warships in our ’hood were undertaking a training exercise using live ammo. Clearly, the ‘authorities’ – whoever they are – didn’t have a clue, although Albo tried it on by claiming that our Chinese buddies had let us know prior to the shooting match – geddit. That wasn’t the case, but I guess it was worth a try. Albo has never been a detail person.

The Chinese government officials – read members of the Chinese Communist party – claimed that there was nothing to see. No law was broken, it was all just routine stuff.? But don’t expect the Chinese warships to go away. Evidently, they are doing a bit of a Matthew Flinders as I write – in international waters, of course.

This incident is a good illustration of the major contradiction in the Albanese government’s position towards the CCP. China is both our major trading partner, by a country mile, yet China is our biggest geo-political enemy in the region. This represents a difficult balancing act for any government, but the Albanese/Marles approach is to pretend that China is really a very good friend and that any seemingly aggressive actions on its part are simply being misinterpreted, particularly by those insane hawks in the opposition: Paterson and Hastie.

The fact that China had slapped substantial tariffs on our wine, barley and lobster exports notwithstanding the free trade agreement between Australia and China – stop that laughing, I know ‘free’ is a loose adjective – should have given Albo a clue about the real nature of the relationship.

It was a chance for Australia to seek out other export markets and reduce our reliance on China as our major trading partner. In fact, the barley producers were able to achieve that. But Albo’s approach was to grovel to the Chinese to remove the tariffs and to celebrate when that outcome was finally achieved. It was all about ‘stabilising’ relations, whatever that means.

Of course, the fundamental contradiction of our connection with China didn’t start yesterday; it has been developing over a long period of time, goaded on by our China-loving Department of Foreign Affairs and Trade (DFAT). In fact, it has been a prerequisite for any incoming DFAT officer to pledge unqualified alliance to the good folk at the CCP as well as Australia.

For many years, we had been led to believe that by developing deep trade links with China, economic freedom would be fostered, and political freedom would emerge in due course in that country. Of course, it was necessary to overlook the gross violation of human rights committed by the Chinese government – think the Uighurs, Tibet and other examples. Yes, it was a pity what happened in Hong Kong, but what the heck.

What this meant was that Australia was right behind the initiative of President Bill Clinton to admit China into the World Trade Organisation and to bestow the ‘most favoured nation’ status on the country. At the time, no one thought that China met the conditions for membership, but it was another ‘what the heck’ moment.

It was one of the factors that led to the massive surge in the exports of cheap goods from China to developed economies, including the US. China’s manipulation of its currency also helped. It was the beginning of a very lengthy violin concerto where China played the rest of the world just like a violin, hurting many industries in the West and leading to a substantial loss of jobs.

Scant regard was paid to the niceties of world trading rules by the Chinese – they had no hesitation in breaking them. And as for protected intellectual property, there were few constraints on stealing an idea or two or three.

The standout area in which China has played the rest of the world, including Australia, like a violin – nay a Stradivarius – is on climate change. While carving out a special deal under the Paris climate agreement, China has embarked on a highly successful campaign to corner the market for all the paraphernalia that the suckers in the West need to buy to ‘act on climate change’. Think here solar panels, wind turbines and, increasingly, electric vehicles.

China is overwhelmingly the dominant supplier of climate-related stuff and intends to remain so. The China apologists, including the luvvies at DFAT, will claim that CCP is really taking the country’s climate obligations seriously. Just look at the windmills and the solar panels installed in that country – possibly just for show.

China has also sought to monopolise the market for rare minerals and to manipulate their pricing, as can be seen in the lithium market. The combination of China’s investment in lithium extraction in Indonesia and its manipulation of the price to keep out Western-aligned producers tells you all you need to know. China has won this game, at least until now.

Recall that China is under no obligation to reduce it greenhouse gas emissions until 2030. There is talk about China reaching net zero in 2060, but that promise is probably just for show. Xi and other Chinese leaders can swan around the world talking about the country’s commitment to act on the climate while profiting massively from all those dopes in the West.

You only need to look at the figures to see what is going on. Thanks to the good folk down at Macrobusiness, here are the key pieces of information.

– Nearly two-thirds of the rise in global carbon dioxide emissions since 2000 has come from China;

– China is the biggest importer of coal and gas in the world;

– China consumes 30 per cent more coal than the rest of the world combined;

– Coal-fired electricity has risen by over 50 per cent in the ten years to 2024;

– Last year, coal was responsible for generating two-thirds of all electricity in that country.

It has been a very smart strategy on the part of the CCP, starting with the wily Deng Xiaoping. As long as you are prepared to park your civil liberties at the door, it has also been a good deal for many Chinese citizens. Millions have been able to escape poverty and that is a good thing.

And because Australia is a major supplier of iron ore and coal, we have gone along for the ride, notwithstanding the broader economic and geo-strategic implications. The useful idiots down at DFAT – as well as some former politicians and some self-serving business types and academics – smoothed over some of the political difficulties that might otherwise have arisen. Successive governments have been prepared to look the other way rather than confront the inherent contradictions in the relationship.

The landscape is about to change again as the Trump administration adopts a much more questioning and potentially aggressive stance towards China. There will be no retreat from the plan by the US to impose higher tariffs on Chinese exports and Australia will be caught in the crossfire.

Rather than simply rely on the limp-wristed advice from DFAT, Albo and a subsequent prime minister will need to toughen up and face up to the reality of China rather than some imagined fantasy.

Author: Judith Sloan