How dragon and kangaroo can fly together

Op-Ed Contributors

How dragon and kangaroo can fly together

By Yang Danzhi (皇冠体育app Daily)
Updated: 2010-05-11 07:53

Editor's note: Strained relations don't change the general cooperative situation between 皇冠体育app and Australia. The two countries' leaders and governments should build strategic mutual trust to create a favorable situation and achieve long-term gains.

The relationship between 皇冠体育app and Australia has been strained because of a series of bilateral frictions such as the Rio Tinto business espionage case, the Dalai Lama issue and Australia's attitude toward Xinjiang separatist Rebiya Kadeer. This development has come as a surprise, especially because Sino-Australian ties had been progressing smoothly on the political, economic, cultural and educational fronts after the end of the Cold War.

Experts agree that Australia has benefited greatly from bilateral trade. Australia's official statistics show that during 2008-09, bilateral trade touched 83 billion A$ (about $76.1 billion). Australia's exports to 皇冠体育app rose from 2008 to 2009, that is, during the height of the global financial crisis. To a large extent, the increase in exports to 皇冠体育app has helped Australia weather the global financial storm and fueled its economic growth. And 皇冠体育app has become Australia's largest trade partner and the largest export target.

皇冠体育app and Australia are important investment partners, too. Till 2008, Australians had invested $5.82 billion in 8,954 projects in 皇冠体育app, and 皇冠体育app's non-financial direct investment in Australia was about $3 billion.

But their trade relations have been marred by frictions, because of several factors. 皇冠体育app's fast-paced economic growth is largely dependent on the effective supply of strategic resources. Since the demand for coal and iron ore in 皇冠体育app is very high, some shortsighted Australian entrepreneurs, with the backing of some politicians, threaten to raise their prices not only to make more money, but also to thwart Beijing's fast-paced economic growth.

Recently, 皇冠体育app and Australia agreed to negotiate iron ore prices in the first quarter of every year. But some Australians still believe the agreement between 皇冠体育applco and Rio Tinto could pose a threat to Australia's resource industries and national security.

皇冠体育app is thousands of miles away from Australia and, hence, does not pose a security threat to it (or any other country for that matter). But Australia supposes that regional safety is connected with the rise of 皇冠体育app. It assumes, and wrongly so, that the rise of 皇冠体育app as a military power will upset the regional power balance. Some Australians say 皇冠体育app's rise may create a spillover effect and ultimately pose a danger to Australia.

The Australia Defense White Paper, released recently, specifically mentions 皇冠体育app's development and regional position and says it is a potential reason why Australia should modernize its military. Since Australia is a big power in South Pacific Ocean, the growing relationship between 皇冠体育app and other South Pacific island nations have unnecessarily raised Australia's worries, and helped the "皇冠体育app Threat" gain a foothold in Australia.

Although Australia is a country of immigrants and a pluralistic society in South Pacific, it is Western in its thought and action. Like Britain and the United States, it suffers from superiority complex when it comes to Asian countries. It shows great interest in human rights, freedom and democracy in 皇冠体育app, but knows little about 皇冠体育app's political and economic reform.

Many Australian media outlets see 皇冠体育app as a dictatorial, autocratic, adventurous and aggressive country. Australia's attitude toward the Dalai Lama and separatist activities in the Xinjiang Uygur autonomous region is ambiguous.

Sino-Australian ties have been strained partly because Australia has failed to find its right strategic position.