China Australia trade war threat over AUKUS submarines and HIMARS missiles

China has sent a chilling threat to Australia that AUKUS nuclear submarines and HIMARS missile deals could come at the cost of unfreezing the trade war dispute.

Relations between China and Australia have steadily improved under the government of Anthony Albanese, who has eased some trade barriers.

Four Chinese power companies will now be able to buy Australian coal again from April 1, and there is hope the bans on barley, wine and lobster will also be lifted.

But China’s ambassador to Australia, Xiao Qian, has warned that it could all come crashing down with devastating effect on local jobs if Australia persists with US military deals.

“If that happens, that’s not going to serve the interests of Australians,” he said. “Perhaps it will serve the interests of other countries.”

Diplomatic ties with China have been strengthened thanks to the work of Foreign Minister Penny Wong and a meeting between Prime Minister Anthony Albanese and Chinese President Xi Jinping.

Contrast this with the standoff under Scott Morrison, in which China imposed punitive tariffs on Australian goods in 2020, hitting Australian businesses hard and isolating the nation’s number one trading partner in some key markets.

China is now said to be trying to meet Australia halfway and has reportedly offered to drop the trade war if Australia withdraws its complaints to the World Trade Organization over the bans.

But that offer now appears to be subject to Chinese concerns over Australia’s military upgrades through the planned $70bn fleet of nuclear submarines and a $558m deal to buy HIMARS missile launchers.

The Chinese are concerned about Australia’s planned $70 billion nuclear submarine fleet (pictured) and a $558 million deal to buy HIMARS missile launchers.

An influential government-run Chinese newspaper this week warned Australia to back down or face dire consequences.

“We still have reservations about lifting sanctions against Australia,” said an editorial in China’s defense times.

‘Although China and Australia have resumed dialogue, the Australian government has not shown all the sincerity that we want to see in really wanting to improve relations.

‘On the contrary, it has become increasingly cooperative [with the US] at the military level. The United States wants to contain China’s ambitions in the Asia-Pacific region.

“The United States always wants to deploy rockets, bombers and other weapons in Australia.

“The Australian government’s move is certainly hurting the already fragile Sino-Australian relationship.”

China fears that the new HIMARS missile system, which has been on display effectively in Ukraine’s war against Russia, will give Australia “unprecedented long-range strike capabilities.”

The government spokesman said the deal could cost any peace deal in the tense trade war.

It raises concerns that the new missile system, which has shown itself effectively in Ukraine’s war against Russia, gives Australia “unprecedented long-range strike capabilities.”

“This is also part of the US military plan in Australia,” he added. ‘The Australian government’s move simply satisfies the American mind.

“The Foreign Office has stressed many times that this move by the US will aggravate regional tensions, trigger a regional arms race, and be detrimental to regional peace and stability.”

Four Chinese power companies will now be able to buy Australian coal again from April 1.

There are hopes that bans on barley (pictured), wine and lobster will also be lifted.

So which country does the US military plan in Australia come from? There is no need to say more, everyone knows it in their hearts.

Ambassador Xiao insisted that the outlook was still optimistic, hailing the upcoming Chinese New Year of the Rabbit as a chance to “jump over hurdles and have good luck.”

He said that the attitude in Australia had “changed from lagging behind to stability, and from stability perhaps to improvement and even development”.

He added: “I hope that as we improve our relations, we will have more encouragement for Chinese companies to come back.” [to buying from Australia].’

Ambassador Xiao Qian (pictured) insisted the outlook was still optimistic, hailing the Chinese New Year of the Rabbit as a chance to “jump over hurdles and have good luck.”

But Dr Alex Bristow of the Australian Institute for Strategic Policy warned Nine News: ‘This is not a meeting in the middle.

“This is China changing course, acknowledging that its policy of coercion, its attempt to get Australia to change its ways has failed.

“There is a good reason Australia is strengthening its defense partnership with the United States and other allies.

“It’s because we are concerned about China’s ambitions.”