Australia plans big defence and security investments
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Last Updated: May 11, 2021, 03:52 PM IST
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The government plans to spend 270 billion Australian dollars ($212 billion) over the next decade on upgrading defence capabilities to promote an open and peaceful Indo-Pacific, Treasury Department documents say.
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Australian Defense Forces personnel parade as they are farewelled at barracks in Brisbane, Australia, before deploying to Afghanistan on June 29, 2015
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The Australian government released a big-spending economic plan for the next fiscal year on Tuesday that includes hefty investments in defence and national security as relations with China worsen.
The government plans to spend 270 billion Australian dollars ($212 billion) over the next decade on upgrading defence capabilities to ``promote an open and peaceful Indo-Pacific, Treasury Department documents say.
Lines of dispute with China are getting sharper
Josh Frydenbergâs big-spending budget and a booming domestic economy obscure the risks and reality of the fractured relationship with Australiaâs biggest trading partner.
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The good news in this big-spending budget will totally overwhelm any pockets of bad news. But China, even if largely unacknowledged, remains central to both.
Record iron ore prices are certainly not the only reason Josh Frydenberg can spend tens of billions of dollars more yet still boast of an improving bottom line. But with recent prices nearly four times the conservative $US55 a tonne predicted in the last budget, Chinaâs demand for iron ore provides a generous buffer for Canberraâs own largesse.
Australia is very ready to engage in dialogue with our counterparts at any level.
Beijing s move freezes discussions between key Chinese and Australian officials below a ministerial level.
But its decision is largely symbolic, given Beijing was already refusing high-level meetings and discussions under the dialogue had not taken place in several years.
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China has launched a series of strikes against Australian commodities over the past year in response to an assortment of grievances.
But Beijing continues to buy vast quantities of Australian iron ore at record prices, minimising the economic impact.
The minister said two-way trade helped both countries.
China has accused the Australia of insane suppression and cut off all economic talks after Victoria s Belt and Road deal was torn up.
China s Ministry of Commerce in Beijing Mei Xinyu blamed the deteriorating relationship on the wildness of Australian politicians . I cannot predict what further wild things the Australian side will do, he said.
Chinese Foreign Ministry spokesman Wang Wenbin accused Australia of having a Cold-War mentality and ideological bias towards China.
Chinese Foreign Ministry spokesman Wang Wenbin accused Australia of having a Cold-War mentality and ideological bias towards China
The dialogue was created in 2014 as a way for Australian politicians to meet with Chinese officials and discuss investment and trade deals - though it had begun to deteriorate after the last meeting was held in 2017
5/7/2021 7:07:30 AM GMT | By Haresh Menghani
AUD/USD failed to build on the previous day’s solid rebound from the 0.7700 round-figure.
Suspension of Chinese-Australian economic dialogue continued weighing on the aussie.
A modest uptick in the US bond yields extended some support to the USD ahead of NFP.
The AUD/USD pair edged lower heading into the European session and was last seen hovering near daily lows, just above mid-0.7700s.
The pair struggled to capitalize on the previous day s solid rebound of around 85-90 pips from the 0.7700 level and witnessed a modest pullback on the last trading day of the week. Signs of strained relations between China and Australia acted as a headwind for the aussie. It is worth reporting that China on Thursday indefinitely suspended all activity under a China-Australia Strategic Economic Dialogue.