Recently, the largest exporting state in Australia, Western Australia, has asked Canberra to avoid opposing China. Canberra, the capital city of Australia, stretches approximately 240 kilometers to the southwest area of Sydney. 

China is Australia’s leading trade partner while the US is one of Australia’s leading allies. During one of Australia's biggest oil and gas industry conference, Mark McGowan, the Western Australian Chief, stated, "This isn't about kowtowing to other countries and giving in. There needs to be a national reset in that relationship."

Tension between the Two Countries

Relations between Australia and China weakened in 2018 following rising worry of Chinese political influences in the Australian society, including universities, the government, and the media. China’s viewpoint regarding the dispute along the South China Sea also raised issues. Therefore, Australia’s recent demand for a nonpartisan inquiry into the genesis of the coronavirus triggered trade retaliation from China. That reaction affected different Australian goods such as lobster, coal, wine, and barley hard. 

Trade relations had already worsened when Australia outlawed Huawei, a Chinese technology giant, from its 5G network back in 2018. Begging the federal government to put a stop to the trade discussion and conflict revenge, McGowan sought to understand: "How is it in our interests to be reckless with trading relationships that fund and drive our prosperity and our nation forward?"

Little Improvement after Conferences

McGowan uttered these comments two days following the Group of Seven leaders meeting in Britain. During the meeting, the leaders blamed China over many issues which forced Beijing to respond angrily. 

Scott Morrison, the Australian Prime Minister who had appeared as a guest during the G7 meeting, met Boris Johnson, the British Prime Minister, and Joe Biden, the US president. The three leaders held discussions about Indo-pacific security. Leading Spare Australian exports that have suffered China’s trade retaliation are liquefied natural gas and iron ore. 

China sources iron ore for its steel sector from Australia. It also relies on Australia for gas to facilitate power generation while looking for alternatives to help reduce coal emissions. According to Woodside Petroleum, one of the largest LNG exporters in Australia, the political conflict has not impacted its LNG (liquefied natural gas) sales. 

Furthermore, the retaliation also has had no effect on the exporter's relationships with Chinese shipyards that are constructing a production center for the organization's oil project in Senegal. Meg O'Neill, the acting chief executive at Woodside, speaking to reporters during the APPEA conference, said, "there's political tension that's coming to bear in certain elements of trade, but for our product and business relationships that we have, we do not see any spillover." 

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