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China threatens Australia with economic carnage over big defence spending

China has threatened to bring economic carnage upon Australia in response to big defence spending announced in Tuesday s federal budget. The government outlined a huge boost for the defence force, more funding for spies and help for exporters to find new markets in a massive push back against an increasingly assertive Beijing.  In response, Chinese newspaper the Global Times - a mouthpiece for the Communist  Party government - has warned that Beijing will block more Australian exports after already banning a range of goods including barley, wine, beef and coal. In an article titled  Canberra s defence spending means more economic carnage , the publication warned Australia s natural gas exports could be next in the firing line.

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