How China uses its trading clout to bully nations like Australia - and why this ...

Australia is far from the only nation China is bullying to get its way politically.

The Australian Strategic Policy Institute has analysed how the Communist superpower uses so-called wolf warrior diplomacy to silence its major trading partners.

Like two-thirds of the world, Australia has China as its biggest trading partner.

Developing and first-world nations alike are heavily reliant on China, whether they are a major exporter or an importer of essential goods.

Australia's exports to China are worth more than the goods it imports, which makes it particularly vulnerable to politically-motivated trade sanctions.

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Australia is far from the only nation China is bullying to get its way politically. The Australian Strategic Policy Institute has analysed how the Communist superpower uses so-called wolf warrior diplomacy to silence its major trading partners. Pictured is President Xi Jinping with his predecessors Hu Jintao and Jiang Zemin in 2019

Australia is far from the only nation China is bullying to get its way politically. The Australian Strategic Policy Institute has analysed how the Communist superpower uses so-called wolf warrior diplomacy to silence its major trading partners. Pictured is President Xi Jinping with his predecessors Hu Jintao and Jiang Zemin in 2019

While Australia is one of the few nations in the world exporting iron ore, the commodity used to make steel, it hardly has a monopoly on wine, beef, tourism and university education.

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ASPI, a think tank, said this made Australia particularly vulnerable to Chinese retaliation, with its ambassador to Canberra Cheng Jingye in April threatening a trade boycott following calls from Prime Minister Scott Morrison for an inquiry into the origins of COVID-19.

'China is the largest trading partner for nearly two-thirds of the world's countries, and its global economic importance gives it significant leverage,' it said in a report by Fergus Hanson, Emilia Currey and Tracy Beattie.

'The impacts of coercive diplomacy are exacerbated by the growing dependency of foreign governments and companies on the Chinese market.'

ASPI's 68-page report - titled The Chinese Communist Party's coercive diplomacy - said China's bullying was set to get worse.

'The economic, business and security risks of that dependency are likely to increase if the CCP can continue to successfully use this form of coercion,' it said.

'This carrot-and-stick approach reflects "a new level of assertiveness, confidence and ambition" in the CCP’s foreign policy and economic diplomacy.'

Australia's exports to China are worth more than the goods it imports, which makes it particularly vulnerable to politically-motivated trade sanctions. China's ambassador to Australia Cheng Jingye (pictured) in April threatening a trade boycott following calls from Prime Minister Scott Morrison for an inquiry into the origins of COVID-19

Australia's exports to China are worth more than the goods it imports, which makes it particularly vulnerable to politically-motivated trade sanctions. China's ambassador to Australia Cheng Jingye (pictured) in April threatening a trade boycott following calls from Prime Minister Scott Morrison for an inquiry into the origins of COVID-19

China in May slapped 80 per cent tariffs on Australian barely and last week added new quarantine restrictions to a fifth beef abattoir.

Australia's biggest exports to China

Iron ore: $65billion

Education: $40billion

Business services: $28billion 

Tourism: $26billion

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