Wood Mackenzie s Yanting Zhou believes the political dispute will âdiscourageâ Chinese investment in Australiaâs natural resource sectors â an area that makes up a large chunk of the nationâs economy
The SED has been used to encourage investment and ease trade talks between the countryâs since it was formed in 2014 (Credit: Shutterstock/Aritra Deb)
China has announced the âindefinite suspensionâ of all activities under its Strategic Economic Dialogue (SED) with Australia â but what could this action mean for the energy industry?
The announcement comes as no surprise to many, as relations have been strained between the nations after Canberra last year called for an inquiry into the origin of the coronavirus pandemic, which first broke out in the Chinese city of Wuhan in December 2019.
The biggest threat to Chinese companies is right at home
Barely a month into a new presidency, Chinese companies have eagerly said “ni hao” to the Biden administration. Huawei CEO Ren Zhengfei publically stated he’d welcome a phone call from the new president to discuss [1] “joint development and shared success.” Meanwhile ByteDance [2] reportedly decided to walk away from a deal with Oracle and Wal-Mart to acquire video-sharing app TikTok thanks to the Biden administration’s decision to put all of Trump’s China policies under review. However, while many Chinese companies may be rejoicing at the potential chance to reverse some of Trump’s bans, they should be warily keeping an eye on the entity that landed them in political trouble in the first place the Chinese Communist Party (CCP).