Federal Opposition cautions against complacency with China relationship

Updated April 05, 2013 08:03:00

The deputy Liberal leader has warned Australia risks becoming complacent about its economic relationship with China. Julie Bishop is heading to China this weekend for the the Boao Forum. Her trip coincides with arrival of a high level government delegation to attend the same forum. Ms Bishop says Chinese officials have expressed concerns to her about Australia's mining and carbon taxes.

Source: AM | Duration: 3min 15sec

Topics: foreign-affairs, china, australia


TONY EASTLEY: The deputy Opposition leader has warned Australia risks becoming complacent about its economic relationship with China.

Like the Prime Minister, Julie Bishop is heading to China this weekend for a conference on regional and international economic and political issues affecting Asia.

The Opposition says Australia's relationship with China needs to be nurtured and investment encouraged.

The deputy Opposition leader Julie Bishop is speaking here to Anna Henderson.

JULIE BISHOP: Australia has a strong economic relationship with China but we are in danger of becoming complacent about that relationship. There is a lot of competition around the world for a relationship with China, particularly in minerals and resources.

I was disappointed that last year there was no Federal Government representative at the prestigious Boao Forum. I attended on behalf of the Coalition and I was the only Federal Member of Parliament present. That was noted in Beijing. I don't think it sent a very good message.

ANNA HENDERSON: Well what are the specific concerns they're raising?

JULIE BISHOP: Oh, specifically concerns about Chinese investment in Australia, that they're not made to feel welcome, that there is too much regulation and red tape to do business in Australia.

They've also raised with me the concerns about the Government ban on live cattle exports without warning or consultation with Indonesia. And while the ban didn't directly affect China, it certainly caused consternation in Beijing that that's the way the Australian Government would treat a close trading partner like Indonesia.

ANNA HENDERSON: The Coalition is arguing the mining and carbon taxes are creating a sovereign risk issue for China that needs to be resolved but what evidence do you have that China is actually concerned about these taxes?

JULIE BISHOP: These are matters that are raised privately in discussions with Chinese officials. Had the Prime Minister been at the Boao Forum last year she would have learned that there was considerable consternation in Beijing about the Government's policies.

ANNA HENDERSON: Were they your, they were your personal discussions that you've had with officials in China, but where is the evidence on the public record that the mining and carbon taxes are considered a sovereign risk?

JULIE BISHOP: You can read it in Chinese newspapers. If you visit China, it's raised public and privately. So they're not just my concerns. It's a general discussion.

ANNA HENDERSON: Can I pick you up on one of the issues you raised about Chinese companies feeling unwelcome in Australia? Isn't one of the reasons that that's the case because of high profile Nationals, your Coalitions partners like Barnaby Joyce, who've made comments like labelling the deal with part Chinese run conglomerate the Cubby Station as "peculiar" and "shady"?

JULIE BISHOP: No, that's not the reference that has been brought to my attention. It's mainly been about Oz Minerals and about Huawei and actions by the Labor Government.

ANNA HENDERSON: Would you need to reign in some of your political allies in order to have a smooth relationship with China?

JULIE BISHOP: The Coalition has always had a strong relationship with China. There will be a repair job required with China and as I've said previously China will need to be reassured that Australia can offer a stable investment environment. There won't be this sovereign risk issues such as the mining tax and the carbon tax under an Abbott-led government.

TONY EASTLEY: The deputy Opposition leader Julie Bishop.