U.S. Indo-Pacific coordinator Kurt Campbell. Source: AFP.
The Market Online - At The Bell

Join our daily newsletter At The Bell to receive exclusive market insights

  • The Biden administration has said that China making efforts to normalise its relationship with Australia is a precondition to Washington taking measures to improve its own ties with Beijing
  • Kurt Campbell — the U.S. president’s Indo-Pacific coordinator — said China’s “economic coercion” of Australia had been a subject in every meeting between U.S. and Chinese officials
  • It comes ahead of the first high-level, in-person contact between the U.S. and China under the new Biden administration on March 18 in Alaska
  • The relationship between Australia and China has been tense over the last year after Canberra pushed for an international investigation into the origin of COVID-19
  • Beijing responded with trade reprisals on Australian coal, wine, barley, live seafood, beef and timber

As the Biden administration opens its first talks with Beijing, Australia’s frayed relationship with China will likely be on the agenda.

Specifically, the U.S. government has said China making efforts to normalise its relationship with Australia would be a precondition to Washington improving its own relations with Beijing.

In an interview with The Sydney Morning Herald, Kurt Campbell — the U.S. president’s Indo-Pacific coordinator — said China’s “economic coercion” of Australia had been a subject in every meeting between U.S. and Chinese officials, and “will be underscored in interactions in Anchorage later this week.”

U.S. Secretary of State Antony Blinken is scheduled to meet with China’s top diplomat Yang Jiechi and State Councillor Wang Yi on March 18 in Alaska, in what will be the first high-level, in-person contact between the two countries under the new Biden administration.

“We have made clear that the U.S. is not prepared to improve relations in a bilateral and separate context at the same time that a close and dear ally is being subjected to a form of economic coercion,” Campbell said in the interview published today.

He also said that Biden had told Prime Minister Scott Morrison during a Quad meeting on Friday — which also included Japan and India — “that we stood together on this.”

“We are fully aware of what’s going on and we are not prepared to take substantial steps to improve relations until those policies are addressed and a more normal interplay between Canberra and Beijing is established,” Campbell continued.

The relationship between Australia and China has been tense over the last year after Canberra pushed for an international investigation into the origin of COVID-19, to which Beijing responded with trade reprisals on Australian coal, wine, barley, live seafood, beef and timber.

More From The Market Online

Bullock: Hold call doesn’t rule out further tightening, if that’s required to beat inflation

Michele Bullock has made it very clear that the Reserve Bank is still strongly considering more rate hikes, especially if it’s the only

Reserve Bank holds rates at 4.35% as inflation battle drags on

The Reserve Bank has left the cash rate unchanged at 4.35%, warning inflation remains too high…
Global trade disruption concept with container ships blocked from entering or exiting the Strait of Hormuz. Maritime blockade and geopolitical tension affecting international supply chain and shipping routes.

Markets rally, ASX surges as US-Iran strike preliminary deal to reopen Strait of Hormuz

Australian shares rallied after the US and Iran confirmed a landmark ceasefire agreement, lifting miners, banks…
Close-up view of erupting molten lava, showcasing the intense heat and dynamic nature of volcanic activity.

Records up top, energy melt down, all eyes back on rech

Records on top. Regime turn underneath. Three U.S. indices closed at record highs into a holiday-shortened week. The Philadelphia Semiconductor Index ripped +5.53%...