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.
In Short:
– U.S. government reopens after 43-day shutdown, causing disruption and unpaid federal workers.
– Political divisions persist, with unresolved issues and nearly equal blame for the shutdown on both parties.
The U.S. government is set to reopen following the longest shutdown in history, lasting 43 days.
This shutdown disrupted air travel and food assistance, leaving over 1 million federal workers unpaid.Political divisions remain despite the funding package allowing the government to resume operations. Republican President Donald Trump’s administration continues to challenge Congress on financial matters, and unresolved health subsidies remain a key issue.
Discontent within the Democratic Party is evident, as moderates and liberals disagree on how to handle Trump’s presidency.
Federal employees affected by the shutdown will receive back pay, with payments expected to be completed by Wednesday. While Trump’s administration previously threatened to withhold pay, there are no current indications of this. The deal reached ensures that federal jobs safeguarded during the shutdown are maintained.
Air Travel Normalises
Air traffic is returning to normal after significant disruption during the shutdown.
The Department of Homeland Security announced bonuses for security screeners who worked extra shifts. State funding for food aid programs will be restored shortly, assisting millions of Americans dependent on these resources.
Polling reveals nearly equal blame for the shutdown is placed on both political parties. Upcoming funding decisions pose the threat of repeating the shutdown cycle as concerns about national debt persist.
U.S. government funded through January; traders anxious amid economic data delays and potential December rate cut.
The U.S. government is funded through January, averting another shutdown for now, but economic data delays and shifting Fed expectations are keeping traders on edge.
Markets now price in a 64% chance of a December rate cut as officials deliver crucial speeches this week.