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US accuses China of economic war against Australia

The US envoy to the Pacific accused China of trying to “bring Australia to its knees” with a wave of sanctions that, in his view, constitute an economic war.

Veteran diplomat Kurt Campbell, speaking to the Lowy Institute in Sydney, lashed out at China for its forceful tactics.

Campbell portrayed China as increasingly belligerent and determined to impose its will abroad, and argued that Beijing has waged “a really dramatic economic war directed against Australia.”

In the past two years, China has pushed through a series of sanctions against Australian goods, in a fierce political dispute that froze ministerial contacts and plunged the diplomatic relationship into its worst crisis since the 1989 Tiananmen massacre.

“China’s preference would have been to break Australia, bring Australia to its knees,” said Campbell, the White House coordinator for the Indo-Pacific region.

China has been upset by Australia’s willingness to legislate to prevent its tech giant Huawei from having 5G contracts and call for an independent investigation into the origins of the coronavirus pandemic.

In response, China imposed sanctions on Australian products such as barley, coal, copper, cotton, wood, lobsters, sugar, wine, beef, citrus fruits, grains, grapes, dairy and baby foods.

The US envoy said that under President Xi Jinping, China became “more adept at risk, more determined, more determined to take actions that other countries see as coercive.”

The Joe Biden government has adopted a policy of “strategic competition” with China, recognizing the rivalry between the two powers while maintaining relations.

Biden recently surprised many in the region by agreeing to share sensitive nuclear submarine technology with Australia, allowing Canberra to increase its military capabilities.

Campbell said the move, part of a tripartite agreement that includes Britain, would unite the three allies for generations.

The US envoy also revealed that other Pacific allies could participate in cyber or other aspects of the AUKUS agreement, as the tripartite pact is known.

“Many close allies have approached us to say can we participate?” He commented.

“It is to the credit of Australia and Great Britain, who have insisted, yes, that this is not closed architecture,” he added.

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