The diplomatic rift between Australia and China continues to worsen, exacerbated by Scott Morrison’s government tearing up controversial infrastructure agreements.
Canberra is bracing for retaliation from Beijing, after it torpedoed Belt and Road Initiative agreements China signed with the Australian state of Victoria.
Australia hasn’t hesitated to stand up to an increasingly assertive and powerful China. It led calls for an independent investigation into the origins of COVID-19, much to China’s fury.
Beijing has even shared a 14-point list of grievances that it has against Australia.
Chinese President Xi Jinping, right, and New Zealand Prime Minister Jacinda Ardern shake hands before their meeting at the Great Hall of the People in Beijing, Monday, April 1, 2019. (Kenzaburo Fukuhara/Pool Photo via AP)
TREADING CAREFULLY
New Zealand’s relationship with China has also been under the spotlight, but for completely different reasons.
New Zealand has been accused of turning its back on its “Five Eyes” allies, amid claims Jacinda Ardern’s government is soft on China.
There’s no question that Australia and New Zealand have fundamentally different approaches to handling the increasing assertiveness of China.
But is New Zealand moving closer to China?
Robert Ayson is a Professor of Strategic Studies at Victoria University of Wellington. He says that while New Zealand doesn’t have a “hardline, zero sum approach to [its] relationship” with Beijing, it “… has taken a strong view on China compared to where it was 7-8 years ago.”
“New Zealand wants to maintain good relations with traditional partners, particularly in the Five Eyes context,” he told Ticker News.
“New Zealand also wants to keep room for a productive relationship with Beijing. New Zealand is unlikely to go down the path that Australia has…”
Australia’s actions have seen it become a victim of China’s economic coercion. New Zealand is seeking to tread carefully, mindful of its economic reliance on China.
FUTURE OF FIVE-EYES
New Zealand has on multiple occasions spoken out against China, including over human rights abuses in Xinjiang.
But the island nation has also been conspicuously absent from some joint statements from its Five-Eyes allies, as it is wanting to chart its own course when it comes to its dealings with China.
The 70-year-old intelligence grouping is made up of Australia, Canada, New Zealand, the United States, and United Kingdom.
New Zealand’s Foreign Minister this week revealed that New Zealand was “uncomfortable” with expanding the remit of the alliance.
Nanaia Mahuta believes the focus of the group needs to remain on intelligence, not on pressuring or criticising China.
Robert Ayson says the “comments did catch out a few people”, given they were made “in a public forum”.
Sorry to read the New Zealand FM has downgraded NZ role in 5 eyes arrangement. And they upgraded FTA with China in February while China was imposing sanctions on Australia. Used to be our best mates. Not now.
Australia’s Foreign Minister Marine Payne travelled across the Tasman this week, taking advantage of the new travel bubble, for a face-to-face meeting with her Kiwi counterpart.Marise Payne was asked by a journalist if she would like to see the Ardern government take a tougher line on Beijing.
“One thing I have learnt in my role in this job as Australia’s Foreign Minister is not to give advice to other countries,” she responded.
It’s advice that New Zealand’s Trade Minister would have done well to heed in an interview earlier this year.
Appearing on CNBC, Damien O’Connor urged Australia to follow New Zealand and “show respect” and “a little more diplomacy” to China.
The comments went down like a lead balloon in Canberra, as the Minister was left to mop up a diplomatic mess of his own making.
U.S. and Israel launch major military operation against Iran; tensions rise as conflict escalates, impacting global markets.
The United States and Israel have launched a sweeping military operation against Iran, striking leadership targets and more than 500 military sites in what President Trump has dubbed Operation Epic Fury.
Explosions have rocked Tehran, with civilians fleeing the capital as U.S. sea and air assets carry out sustained attacks. Washington says the mission is designed to prevent a nuclear armed Iran and has even called on Iranians to rise up against the regime.
Iran has retaliated with a barrage of missiles and drones targeting Israel and U.S. bases across the region, including in Qatar, Kuwait, the United Arab Emirates and Bahrain. While many projectiles were intercepted, a U.S. base in Bahrain sustained damage.
Gulf states long seen as stable hubs for global business are now directly in the firing line, raising fears of a wider regional war.
Oil prices are climbing and tankers are diverting from the Strait of Hormuz as markets react to the escalating conflict. U.S. aircraft carriers, advanced fighter jets and missile destroyers remain in position, signalling more strikes could follow.
With global leaders scrambling diplomatically, the world is watching to see whether this spirals further or shifts back to negotiations.
In Short:
– Iran’s Guard Corps advises ships to avoid the Strait of Hormuz due to rising tensions.
– Tankers have diverted to Qatar and UAE amidst concerns over safety and potential Iranian threats.
Iran’s Islamic Revolutionary Guard Corps has instructed ships to avoid the Strait of Hormuz, a crucial shipping lane linking to the Persian Gulf. About a hundred merchant vessels transit the strait daily, according to the U.S.Tensions have escalated recently as the U.S. increased military presence in the region and Iran issued threats. Western nations are concerned about Iran potentially laying sea mines to disrupt commercial traffic. Currently, no evidence suggests Iran has mined the strait.
Ships have been repeatedly warned against entering the strait, as stated by crews in the area and the European Union’s naval command, Aspides. On Saturday, dozens of tankers diverted, with some seeking refuge in Qatar and the United Arab Emirates while others opted to steer clear of the region, as reported by oil brokers and shipowners.
Shipping Concerns
Tensions continue to impact shipping operations as carriers remain cautious in the Gulf region.
Tanker crews reported hearing explosions near Iran’s Kharg Island, which is vital for the country’s oil exports, as it handles 90% of its crude oil shipments.