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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.

How the Budget helps Australia fight back against China

Australia will bolster its defence force, provide more funding for its spies and help exporters find new markets in a massive push back against China.  Canberra-Beijing relations have deteriorated since last year when Prime Minister Scott Morrison called for an independent inquiry into the origins of coronavirus which was identified in the Chinese city of Wuhan. China has blocked key Australian exports including coal, seafood, beef and barley - and has been blamed for a series of ongoing cyber attacks on Australian institutions. Some analysts have warned there could be war in the Pacific region in the next five years if China tries to reunify Taiwan by reclaiming the self-governing island of 25 million people.

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