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China has frozen economic dialogue with Australia indefinitely

China announced today that it is freezing its participation in strategic economic dialogue with Australia indefinitely, global agencies reported.
Recently, individuals from Australia's government, based on Cold War-era mentality and ideological preconceptions, have taken a number of measures that have created hurdles for normal contacts and cooperation between the two countries, China's National Commission for Development and Reform (NDRC) in a brief communique.

The Commission does not specify which measures were the reason for the decision.

The news led to a sharp decrease in the Australian dollar, which retreated to 0.7701 Austr USD against the US dollar following the rate of 0.7747 August dollars yesterday, BTA reported.

Bilateral relations between Beijing and Canberra have strained in 2018, when Australia became the first country to publicly ban Chinese tech giant Huawei (Huawei) access to its 5Ji (5G) network. Tensions intensified last year after Australia demanded an independent inquiry into the origins of the coronavirus, leading to retaliatory trade measures from China.

Australian Prime Minister Scott Morrison announced today that the government has cancelled the state of Victoria's international agreements made with China under the One Belt, One Road initiative because they do not meet the country's foreign policy interests.

In the 12 months to March, Australia exported to China goods worth $149 billion ($115.04 billion), of which the largest share is iron ore.

Experts say, however, iron ore exports will not be substantially affected by tensions between the two countries.

We believe that iron ore trade between Australia and China will remain protected from political tensions between the two countries at the moment, points out Atilla Windnell, managing director at Singapore's Navigate Commoditis (Navigate Commodities PLtd).

This is an interdependence where no side can survive without the other, he adds.

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