“A fundamental consideration in those who had understandable concerns about making the commitment to net zero by 2050 from an Australian perspective were the commitments that were being made elsewhere around the world,” Birmingham said.
“If we are seeing other nations,particularly those who are major users of Australian resources and energy at present,fulfil their commitments to achieve net zero by 2050,then that means that our export mix will change,has to change,and it will see a decline in relation to some of those traditional fuel sources.”
He said the government’s priority was now “adapting the export base” and ensuring Australia becomes a leading supplier of hydrogen as a fuel source. The comments are likely to play well internationally but remain politically risky at home where the Coalition will fight an election in less than six months and have to win over voters in coal-exporting electorates in Queensland.
The international pitch will aim to turn around a 48 per cent drop in foreign direct investment in 2020. Chinese investment was down 61 per cent in the same period after tensions with Beijing over human rights and COVID-19 saw Australia hit with $20 billion in trade sanctions.
That figure is expected to fall further amid continuing tension between Beijing and Canberra and a push from the Chinese Communist Party to get its companies to invest more at home. Australia has also increased restrictions on Chinese investment in Australia includingblocking a $600 million bid for Lion Dairy by Chinese giant Mengniu that “was contrary to the national interest”. The government has not elaborated how the purchase would have threatened competition or national security.
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In April,the federal government also tore up Victoria’s memorandum of understanding with China’s major international investment drive – the Belt and Road initiative – and a final decision on the national security risks of Chinese company Landbridge’s lease over the Port of Darwin is imminent.
China has accused Australia of wanton interference in its internal affairs,economic coercion and hypocrisy over its decision to scupper the foreign investment deals.
Birmingham said the government did not have any hostility towards China,but it would always stand up for international laws and norms.
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“It is so crucial that we maintain our resolve and our consistency,” he said. “We are very clear that we will pursue as a government everything that is in Australia’s national interest.”
No Australian government minister has had direct contact with their Chinese counterpart in more than 18 months.
“That perhaps has been one of the more disappointing aspects of the stance China has taken over the last couple of years,” said Birmingham. “The unwillingness to engage in dialogue and that,of course,makes it so much harder to be able to move forward in terms of resolving these types of issues.”
Birmingham said China would have to talk to Australia if it wanted to join the giant Trans-Pacific Partnership (TPP) trading bloc. Australia,like all members of the bloc,has a veto over membership. China filed an application to join the 11-country trade deal in September.
“Any nation who is willing to meet those very high standards and to engage in the dialogue with other TPP partners to get agreement to ascension to the TPP,will be welcome at the table of the TPP,” he said.
“But that is quite a challenge in relation to China to be able to both firstly,ensure that dialogue occurs with all the TPP partners,which includes Australia and means a resumption of the type of talks that China has been unwilling to have in recent times.”
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