China import ban won't squeeze Australia, says incoming Japan envoy

Canberra 'will continue to look to diversify markets': Justin Hayhurst

Australia’s ambassador-designate to Japan Justin Hayhurst after an interview on Feb. 3 in Tokyo. (Photo by Yuki Kohara)

RURIKA IMAHASHI, Nikkei staff writer

February 6, 2023 10:41 JST

 

TOKYO -- China's ban on imports will not succeed in pressuring Australia into shifting policy on its biggest trading partner, Australia's ambassador-designate to Japan told Nikkei Asia in a recent interview.

"Blocking trade won't pressure a government into changing its policy positions, not in Australia," said Justin Hayhurst, who will be formally sworn in after presenting his credentials to Emperor Naruhito.

Hayhurst's comments refer to an import ban on commodities such as coal in 2020 when the relationship between the two nations reached a nadir. The Australian government called for an investigation into the origins of COVID in China, which met with retaliation from Beijing to block trade, and Canberra has also taken a "very clear" position on Taiwan by opposing any unilateral change to the status quo.

"It also damages mutual interests because our trade is a mutually beneficial activity, we provide inputs that are often further processed in other countries," Hayhurst said, adding that he hoped reports about China partially resuming coal imports were true.

"We're a reliable supplier of these commodities," said the deputy ambassador to China between 2012 and 2016. "It's never Australia choosing to block supply."

Even so, Hayhurst said China was an important part of the global economy, and there is "no reason not to trade and invest."

"But that doesn't mean we want to be over-reliant on one market or one source of supply. So we will continue to look to diversify markets."

While China is increasing its clout in the Indo-Pacific region while strengthening engagement with Pacific islands nations, Hayhurst said Australia is now "spending more development money than ever before" and has increased its security assistance to the region.

"When we think about developments in the region, the issue is not so much what China is doing," said Hayhurst. "It's what we're doing to respond and what we are delivering and how strong our partnerships are. ... We're building the connections."

Australia will host a Quad summit this year for security discussions with leaders from the U.S., India and Japan.

Hayhurst said that "supply chain resilience clearly would be a focus for the leaders" of this year's Quad summit. "There'll be a strong emphasis on [the Association of Southeast Asia Nations] centrality," he added.

"There is no way for the countries of the Quad, either bilaterally or as a group, to succeed in their agenda of engagement, diplomacy and assistance systems without working with ASEAN," he said. "It's a big priority for all four countries."

Australia is also a member of the AUKUS security pact with the U.S. and the U.K. -- an agreement that includes providing Canberra with the technology and capability to deploy nuclear-powered submarines.

Hayhurst said he anticipated the three governments will make an announcement about "the optimal pathway" for the country to acquire the submarines "in the next few weeks."

AUKUS is expected to announce methods the partners will use to work together on developing undersea capabilities, hypersonic weapons and counter-hypersonics, as well as applying artificial intelligence to defense.

Without providing details, Hayhurst said the defense technology partnership has "collaboration in many areas."

On Japan, he said that ties have "never been stronger and it's never been broader."

Last year, the two countries signed a security declaration reaffirming their "vital special strategic partnership" and formed a new partnership to help build secure supply chains for critical minerals.

"Both countries have capital and expertise. Both countries have an interest in diversifying their supply chains," said Hayhurst.

"So there is big potential, and the Australian government is really committed to encouraging greater Japanese investment and involvement in that sector."

https://asia.nikkei.com/Editor-s-Picks/Interview/China-import-ban-won-t-squeeze-Australia-says-incoming-Japan-envoy