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  • 45 years.

  • It's been 45 years since China and Australia established diplomatic relations.

  • Since then, things

  • have changed a lot.

  • Throughout all these years, both countries have maintained one the most fruitful, controversial

  • and interesting relationships in the entire planet.

  • A relationship based on stories about money, spies, accusations, infidelities and many,

  • but many conflicting interests.

  • Because, in all honesty, if we were talking about a relationship between two people instead

  • of two countries, we'd have a great script for a Latin American telenovela.

  • But obviously, this is VISUALPOLITIK, so... to the point.

  • Today, China is this country's main commercial partner.

  • Their purchases represent about a third of all Australian exports, 8 times more than

  • exports to the US.

  • See, in 2015 China and Australia signed a free trade agreement and today their trade

  • relations exceed 155 billion dollars per year.

  • And not only that, China is also becoming an increasingly important investor in Australia,

  • a country where 1 in 20 people is Chinese; among them many millionaires who decided to

  • find a safer place with more guarantees for their assets and lives.

  • (Such is the scale of trade that financial markets have long been of the view that the

  • Australian dollar is one of the best proxies for bets on China itself.

  • James Laurenceson, Deputy Director of the Australia-China Relations Institute, University

  • of Technology, Sydney.)

  • Of course, this all has consequences.

  • We already talked about it, here in VISUALPOLITIK.

  • Australia has broken all records and has not known a crisis for almost 30 years.

  • Sounds amazing, right?

  • Well, in all this success, the great Chinese takeoff had a lot to do.

  • Therefore, it's easy to understand why when the Lowy Institute, an important Think Tank

  • in the country, asked Australians last year which relationship was more important to them,

  • the one with the United States or the one with China, it was a tie.

  • Even when their relations with their North American friends are very close.

  • However, in spite of this romance, the fact is that 2017 was not a year of love for Australia

  • and China.

  • Check out what Bob Carr, former minister for foreign affairs of Australia, said on the

  • subject:

  • ( “This year, Australia declared rhetorical war on China.

  • The words being used by Australian leaders are the harshest any time since diplomatic

  • relations commenced in 1972, with the exception of comments at the time of the Tiananmen crackdown.

  • The tone is harsher than that of any other US ally, including Japan.”

  • Bob Carr.)

  • As you can see, 2017 was a very difficult year for both countries' relations.

  • So much so that a survey by the Global Times, one of China's most popular newspapers,

  • determined that Australia was the most hostile country to China in 2017.

  • And the truth is that, with Trump in the White House, those are big words.

  • But what the hell happened?

  • What has led to so much dissension between Canberra and Beijing?

  • Well, let's see.

  • (THE STORM)

  • In fact, at first, 2017 seemed like it'd be a good year for Chinese in Australia:

  • economic relations wouldn't stop growing;

  • Trump, showing off his best diplomatic skills, hung up on the Australian Prime Minister Malcolm

  • Turnbull himself, further sinking his popularity in this area of the world;

  • and the Australian government even publicly supported China replacing the United States

  • as a main member of the failed TPP, the Pacific free trade agreement.

  • We could almost say that, in telenovela terms, love was about to succeed.

  • However, calmdidn't last longand everything started to go wrong halfway through

  • the year.

  • Really wrong.

  • Yes... they'd had some clashes before, but nothing major.

  • In recent years, the Australian government has followed a strategy that basically consisted

  • in trying to balance their position between Beijing and Washington.

  • In economic matters... it was all Beijing, and in security and defense matters...

  • Washington, of course.

  • We already mentioned here, in VISUALPOLITIK, that Republicans consider Australia to US's

  • best ally.

  • As it should be:

  • Australia is the only country that intervened in every major US war, and for years their

  • military relations have been so tight that Australia has become the US's spearhead

  • in this area of the world.

  • The Australian Prime Minister himself has shown his great appreciation for the United

  • States:

  • (“The peace and stability of our region has been enabled by consistent US global leadership.

  • While that leadership would not have been possible without the hard power of fleets

  • and armies, its greatest potency has come from the values which it embodies.

  • Through all the twists and turns of history, the United States has stood for the values

  • on which its great republic was founded: freedom, democracy and the rule of law”.

  • Malcolm Turnbull)

  • But... back to the Chinese mattersee, these words were pronounced on June 2, 2017.

  • That was the first time that an Australian Prime Minister spoke so clearly in favor of

  • Washington in a speech, which was also full of warnings

  • to China.

  • And then, just 8 days later... the media storm broke out.

  • Several media reported on a single story:

  • The Australian Intelligence Agency was making very serious warnings about the Chinese government's

  • intentions to influence Australian politics through various means, including purchasing

  • politicians, journalists and scientists; or the surveillance and intimidation of citizens

  • belonging to the Chinese community in Australia.

  • The scandal was unleashed.

  • Suddenly news started to emerge on the collaboration Australian universities and scientists with

  • Chinese military contractors or former politicians, such as the former Trade Minister Andrew Robb,

  • who now work for companies controlled by the Chinese government in exchange for juicy salaries

  • that amount to hundreds of thousands of dollars.

  • And of course, the Australian security services' fear on Chinese espionage isn't new....

  • Various Australian governments have been blocking Chinese corporate operations for years, and

  • have also banned companies such as Huawei from participating in deploying a national

  • broadband network.

  • This is all precisely because of a fear of espionage or excessive Chinese influence.

  • However, despite everything, controversy and tension had never gone this far.

  • (“Media reports have suggested that the Chinese Communist Party has been working to

  • covertly interfere with our media, our universities and even the decisions of elected representatives

  • right here in this building, in the Parliament . Malcolm Turnbull)

  • On December 12, 2017, Sam Dastyari, Labor Party Senator and one of the most promising

  • political figures in the country, was forced to resign because of his ties to China.

  • Among other things, he was accused of receiving money in exchange for speeches that favored

  • the Chinese government's interests and even of having alerted a Chinese businessman linked

  • to the Communist Party that he could be being investigated by the country's intelligence

  • agencies and that his phone could be tapped.

  • Well, scientists collaborating with Chinese military contractors, university infiltration,

  • paying journalists, buying politicians... these accusations ran since the beginning

  • of June...

  • The Australian government denounced it publicly and began modifying its legislation on espionage,

  • treason, immigration and on financing political parties... and this, my friends, looks like

  • it's just the beginning.

  • The consequences of these cooling political relations can be seen, for example, in foreign

  • policy.

  • For example, we can clearly say that in 2017, Australia has been favoring the US like never

  • before.

  • But, don't think that this position has been unanimous among the political class,

  • not at all

  • ( “The government doesn't seem to understand the economic importance of the relationship

  • with China or the strategic issues involved [...] “We are putting all of our faith in

  • our relationship with China through the foreign policy lens of the US.”

  • Paul Keating, australian former prime minister)

  • And my friends, you know what?

  • Given the circumstances, I think that this entire debate on the position Australia should

  • take before China is quite understandable:

  • On the one hand, many critics affirm that there isn't enough evidence of the Chinese

  • interference that the government denounces.

  • Some even say that this is all a political operation fed by Washington.

  • On the other hand, “breakingwith Chinaor at least being this forceful with the

  • Beijing governmentisn't exactly easy for Australia.

  • Why?

  • Check it out.

  • (CHINA DEFENDS ITSELF)

  • Throughout this entire political crisis, China has been very strong:

  • of course they have denied all accusations and have even said that this entire campaign

  • is based on racial prejudice and a clear anti-Chinese paranoia.

  • A paranoia they have claimed is turning into a clear hostility towards the Chinese community

  • itself:

  • (Chinese diplomats warn students in Australia to stay alert to safety risks after spate

  • of attacksSouth China Morning Post.)

  • Yes, this type of messages may seem exaggerated, especially because the truth is that beyond

  • a few posters in some university or other, there seems to be no evidence of this acclaimed

  • danger...

  • but, given that on the one hand this claim shows us how things are; on the other it is

  • a kind of warning, because, clearly, it isn't good publicity.

  • Allow me to explain myself.

  • Chinese students account for 4 out of every 10 foreign students in Australian universities,

  • and spend 18 billion dollars in the country every year.

  • Yes, you heard that right.

  • It seems like Xi Jinping's government wants to make it very clear that it is willing,

  • if necessary, to play in economic terms as a pressure measure.

  • Something that, by the way, they used recently with South Korea and Taiwan.

  • And we aren't only talking about students, but also about tourists or investors.

  • For example, in recent years the luxury sector has experienced a huge economic boom in Australia.

  • Do you know why?

  • Listen up:

  • (“Students, tourists and Chinese residents in Australia are responsible for up to two-thirds

  • of all luxury retail sales in Sydney and Melbourne.”

  • South China Morning Post.)

  • Want another example?

  • China's direct investments in Australia have multiplied, not by 10 or by 20, but by 32

  • in just 9 years.

  • By 32!

  • So, as you can see, slowing down this entire process could translate into a lot, and that

  • is a lot of pain for the Australian economy.

  • Anyway, my friends, that's the way things are.

  • So far, the Australian government remains faithful to its close relationship with Washington,

  • the United States seems to have secured an alliance that is essential for their interests

  • in this area of the world.

  • And for their military industry.

  • In recent years Australia became one of its best customers, and in the next decade, they

  • expect to spend more than 100 billion dollars renewing their Armed Forces, where American

  • contractors have an advantage

  • However, it isn't few, and by this I mean politicians, businessmen and citizens, who

  • ask Australia to remain neutral and protect its national security without having to make

  • so many public accusations.

  • How will this story end?

  • Will one of the most fruitful relationships in recent years be at risk?

  • Only time can tell.

  • But now it's your turn, where do you think Australian politics should turn?

  • Leave us your answer in the comments and in this survey.

  • Leave your answer in the comments as well as in the survey.

  • I really hope you enjoyed this video, please hit like if you did and don't forget to

  • subscribe to our channel for brand new videos every Monday and Thursday.

  • Also, don't forget to check out our friends at the Reconsider Media Podcast - they provided

  • the vocals in this episode that were not mine!

  • And as always, thanks for watching!

45 years.

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