Trade Minister Damien O’Connor has caused trans-Tasman tensions for saying Australia “should follow us and show respect” to China in an interview with an Asian broadcaster.
His comments have reportedly bothered senior figures in the Australian government, according to a report in the Sydney Morning Herald.
O’Connor also appeared to confirm that New Zealand will attempt to mediate a resolution between Australia and China, however, the Government has since tried to talk down such a move.
The relationship between the two countries froze over in 2020 with China ratcheting up billions in trade sanctions against Australia. It came after years of tension over Australia countering Chinas rising influence in the region, including the passing of a foreign investment law broadly seen as targeting Chinese investments.
Ministry of Foreign Affairs & Trade/Supplied
Trade Minister Damien O’Connor at the signing of the NZ-China free trade agreement upgrade on Tuesday.
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Speaking to CNBCs Squawk Box Asia TV programme after the signing of the New Zealand-China free trade agreement upgrade on Tuesday, OConnor was asked how New Zealand could mediate between Australia and China.
We have free and frank discussions with them, and I guess that honesty and frankness is something that China appreciates, we certainly do from our side, the minister said.
I cant speak for Australia and the way it runs its diplomatic relationships, but clearly if they were to follow us and show respect, I guess a little more diplomacy from time to time and be cautious with wording, then they too, hopefully, could be in a similar situation.
We have the benefit of being a small country, weve always maintained our independence … and I guess over time hopefully thats given us the opportunity to be a good mediator, facilitator, and our chair of APEC this year does provide an opportunity for us to do whatever we can to build relationships.
OConnor was unavailable for an interview on Thursday. A spokesman provided a statement attributed to the minister saying he had since spoken with his Australian counterpart, Minister Dan Tehan.
The Australia-China relationship will always be a matter for China and Australia.
Ive spoken with my Australian counterpart earlier today to reiterate, as I said in the interview, that we do not speak for Australia on this or any other matter.
Tehan on Thursday evening issued a statement saying Australias relationship with China is based on an assessment of our national interests.
We pursue engagement with China on the basis of mutual benefit, and the complementarity of our economies makes us natural trading partners.
We are always open to dialogue as the best way to resolve differences.
The Sydney Morning Herald, citing sources, reported that senior government members were unsettled by OConnors comments.
Former Australian diplomat and Liberal MP Dave Sharma told the Herald: I dont see this advice from New Zealand as particularly insightful or helpful.
The idea that Australias tone or wording is somehow responsible for challenges in our relationship with China is one we fundamentally reject and is at odds with reality.
New Zealand first appeared to offer itself as a broker between Australia and China in December, with Foreign Minister Nanaia Mahuta telling Reuters that APEC may be an opportunity to have a conversation.
But both parties will have to be willing to come together and concede in some areas where they are currently not seeing eye-to-eye, Mahuta said.
Her office has since poured cold water on the idea, a spokesman saying: Minister Mahutas comments to Reuters were not focussed on the Australia-China relationship, which she described as a matter for China and Australia.
A full reading of the interview transcript shows that she was focused on the potential to use APEC as a platform for bringing countries together.