China 'indefinitely' suspends economic accord with Australia as relations curdle

In a recent development on the global front, China decided to suspend all its activities under the Strategic Economic Dialogue with Australia, a move that is likely to aggravate the tense diplomatic relations between the two countries. 

In a tweet, China Global Television Network reported, 

"China indefinitely suspends all activities under the framework of the China - Australia Strategic Economic Dialogue held by the Chinese National Development and Reform Commission and relevant Australian ministeries."

This decision surfaced a couple of weeks after Australia scraped the controversial Belt and Road Initiative (BRI) agreement with China citing the deal as against its national interest. Last month, Australian Foreign Minister, Marise Payne said that the BRI deal has been cancelled under the Commonwealth's new foreign veto laws. The cancellation could also mean an end to further Sino- Australian cooperation in the fields of industrial production, biotechnology and agriculture. 

Meanwhile, China said that Australia's decision to terminate BRI agreements was among several "negative moves" that had hurt bilateral relations. According to South China Morning Post, China's top diplomat who is in Canberra currently, blamed Australia for deteriorating ties between the nations, accusing it of economic coercion and "provocations" in a wide-ranging speech that painted Beijing as a victim.

Sino-Australian relationship hardened over the years

When Canberra proposed an independent international inquiry into the origins of the COVID-19 pandemic in April last year, Australia scrapped the controversial Belt and Road (BRI) agreement with China claiming the deal was contrary to the national interest. Experts have further marked that the Australian government's decision to cancel the agreement could further prompt delays or pullouts by other countries involved in the China-coined BRI project. 

China's reaction 

China's reaction to Australia's cancellation decision was rather sharp. They said that the move by the State of Victoria is category categorised as "negative moves" and it had soured bilateral relations. According to South China Post, China's top diplomat Cheng Jingye blamed Australia for deteriorating ties between the nations, accusing it of economic coercion and "provocations" in a widely ranged speech that obviously painted Beijing as a victim. 

Relations between Australia and its largest trading partner have been in freefall since April last year after Canberra provoked Beijing by proposing an independent probe into the origins of the COVID-19 contagion of the virus. Beijing has since inflicted a range of trade reprisals, including imposing crippling tariffs on Australian barley and wine while blocking coal shipments.