China 'fears its unsettled population' claims expert

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Former Australian Prime Minister and UK trade adviser Tony Abbott issued the stark warning as Britain looks to enter new global markets after leaving the EU. Mr Abbott, a member of the Board of Trade, claimed the world superpower was weaponising trade and urged the UK against selling key businesses or even collaborating at higher education level with China.

Speaking at an event hosted by think tank Policy Exchange, Mr Abbott warned of the prospect of a new cold war and described China as the “challenge of the century”.

He said: “After 40 years of bide and hide, China is asserting itself aggressively in what is at best a cold peace and more likely a new cold war, only against a strategic competitor that is far more formidable than the old Soviet Union because it is being increasing embedded inside the global economy and can bring economic as well as military pressure to bear against its targets.

“Barring a change of dynasty in Beijing, China is likely to be the challenge of the century with big implications for economics as well as security.”

The 63-year-old insisted the UK should not cease trading with China altogether but should be “much more careful” about becoming economically dependent on Beijing.

Mr Abbott claims the Chinese Communist Party (CCP) sees trade as “strategic weapon” that can be turned “on and off like a tap to reward friends and punish foes”.

He added: “I’m not advocating a retreat from free trade, just the importance of distinguishing between countries that really are open for business and those where business is more politics by other means.

“As global citizens, we should want all countries to succeed but, as supporters of democracy and the rule of law, it might sometimes be best to preference those that share our values.”

The Government has already made moves to cut dependency on China by stripping technology giant Huawei from the domestic 5G network over security fears.

Whitehall is also reportedly looking to block a Chinese state-owned nuclear energy company from all future power projects in the UK.

Mr Abbott has seen first-hand the economic damage a strained relationship with China can do to a country’s economy.

Tensions between Canberra and Beijing have soared over the past 12 months following calls by the Australian Prime Minister for an independent probe into the origin of coronavirus.

Last year, China imposed crippling sanctions on vital Australian exports – including beer, coal and wine.

China is Australia’s biggest trading partner, accounting for 29 percent of all trade in 2019, according to the Department of Foreign Affairs and Trade.

The breakdown in ties has seen Chinese investment in Australia plummet by 61 percent in 2020, the lowest number in six years, according to the Australian National University’s Chinese Investment in Australia Database.

International Trade Secretary Liz Truss is leading talks with nations around the world about how the UK can enter new markets.

The Cabinet Secretary was asked about the remarks made by Mr Abbott and said she did not think there was “full transparency” when it came to the dealings of President Xi Jinping’s administration.

Mr Truss also warned of the prospect of a cold war, she said: “I believe that there are currently practices going on, particularly in global trade, that need to be challenged.

“I think it is right we deal with it on a practical level, we look at what are the tools we have and we look to improve the way the World Trade Organisation is operating.”

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Brexit Britain has already applied to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

The trading alliance is made up of 11 nations, including Australia, Canada and Japan-China is not part of the group.

Ms Truss stressed the importance of the UK doing business with “like-minded allies”.

She said: “The important point about trade with like-minded allies, joining organisations like the CPTPP is we are building up trade that is trusted with like-minded allies and supports the development of a free enterprise economy under democratic values.”
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