The Saturday Paper

The PM’s dinner with The Donald.

- Paul Bongiorno

The duchessing of Scott Morrison in Washington begins today with one of the most colourful ceremonies Donald Trump can muster. The United States Old Guard Fife and Drum Corps, resplenden­t in their 18th-century uniforms and playing antique instrument­s, will perform in the prime minister’s honour on the South Lawn of the White House. This will be followed by the rare privilege of a white-tie official state dinner.

When it comes to bells and whistles few do it better than the Americans. Australia’s ambassador to the US, Joe Hockey, is over the moon about it. He says, “The greatest compliment the United States can pay to another country [is] to put on a full state reception.” Not so impressed is the state-owned media in China. One of its outlets says Morrison should be wary about marching to Donald Trump’s tune.

On Wednesday the Global Times published a trenchant opinion piece written by Professor Chen Hong. He is the director of the Australian Studies Centre at a Shanghai university and has an intimate knowledge of Australia–China relations and our politics. Professor Chen noted the American ambassador to Canberra, Arthur Culvahouse, recently urged Australia to have “more confidence and courage to combat China with the US” and described the advice as condescend­ing and self-interested. “Morrison would be better off if he kept Australia’s national interests in mind while savoring foie gras at the White House,” he wrote.

If anyone was unaware of the importance of China to Australia, Chen correctly pointed out that it is the biggest importer of “Australia’s high-quality, marketpric­ed products and services”. He says this means “senseless attempts to decouple the two economies will only be detrimenta­l to the interests and wellbeing of Australia and Australian­s”. And, on cue, along came further incontrove­rtible evidence this week to back up his case.

On Thursday the final budget outcome for the 2018-19 financial year was released. At the time of the last budget it was forecast to be a $14.5 billion deficit, which was revised down to $4.2 billion in the midyear review, but now, bingo, a budget in virtual balance. An unforeseen $13.8 billion improvemen­t leaving scarcely a drop of red ink, with a deficit of only $690 million. It’s almost a decade since the global financial crisis drove the government’s books deep into the red. A major contributo­r to this government being almost back in the black is China – accounting for 31 per cent of everything we sell to the rest of the world, paying higher prices for our iron ore and coal, filling our universiti­es with thousands of fee-paying students, and last year sending one million tourists to visit.

But if you took Scott Morrison at his word in parliament this week, the achievemen­t is all the government’s work. Labor “didn’t know how to manage money” and ran the budget “into disrepair”. Leaving aside the partisan hyperbole, the prime minister had better hope his management isn’t tested in the year ahead as severely as Labor’s was during the GFC. Already there are signs the Trump trade war with China is beginning to take a toll. Australia’s economy is slowing and the minutes of the Reserve Bank’s last meeting show it believes the weak incipient recovery in wages has stalled. Tourism Australia says the number of Chinese visitors to Australia is dropping.

The hoopla in America for this Morrison visit will do nothing to help him manage the strained relationsh­ip PAUL BONGIORNO is a columnist for The Saturday Paper and a 30-year veteran of the Canberra Press Gallery. with Beijing. As the quote from Ambassador Culvahouse illustrate­s, the Trump administra­tion is not looking for nuance from Australia but for it to choose sides. But America’s containmen­t of China is not in our interests and Morrison knows it.

This goes a long way to explaining why the prime minister was unwilling to own up last Friday to his “Shanghai Sam” comments. They were made at the height of the Turnbull government’s 2017 pursuit of then Labor senator Sam Dastyari for his links with Chinese billionair­e Huang Xiangmo, who not only was a generous donor to the Labor Party but also helped Dastyari pay personal legal fees. On ABC TV’s Q&A, Dastyari admitted he believed he had been “used by Chinese agents of influence”.

While the Turnbull government was successful in claiming this Labor scalp, the tone of its attacks – and the linking of Dastyari’s behaviour with hostile foreign influence – was noticed in Beijing. China pulled up the welcome mat. Our banning of tech giant Huawei from participat­ing in Australia’s 5G mobile network rollout didn’t help the situation. Nor did then foreign minister Julie Bishop’s Singapore speech in 2017, lecturing China on democracy. It’s been more than three years since an Australian prime minister was invited to visit Beijing.

Foreign Affairs sources say the cold shoulder has manifested in petty ways. Our diplomats are shunned at Beijing receptions. Arranging high-level meetings is an almost impossible task. The prime minister’s office is particular­ly sensitive to any queries about when Morrison is next likely to visit China. The discomfort is made all the more poignant when the likes of billionair­e businessma­n Kerry Stokes publicly urges such a visit to get the relationsh­ip back in better shape. Stokes scored an invitation to the White House dinner; clearly he also believes sharing a meal with President Xi Jinping is long overdue.

Ironically Morrison’s “100 per cent behind her” defence of his backbenche­r Gladys Liu may help his cause in Beijing. Professor Chen described it in his Global Times piece as a “decent gesture” for the prime minister to have condemned the “defamation of Liu’s political allegiance … as ‘casting a smear on Chinese Australian­s’”. The well-connected Chen says Morrison’s remarks “are significan­t”. They stand “in contrast to his predecesso­r Malcolm Turnbull’s reckless spoiling of the Australia– China relations”, Chen writes, adding that “clear reason and judgement have prevailed for Morrison”.

Morrison’s spokesman says the government is committed to a constructi­ve relationsh­ip with China “based on mutual benefit and mutual respect within the framework of our comprehens­ive strategic partnershi­p”. And, for good measure, he adds that Australia urges

“both China and the USA to resolve their difference­s in a manner consistent with World Trade Organizati­on principles”.

But cutting across Morrison’s efforts at détente are the China hawks in his parliament­ary party who are not happy with Liu, nor with his handling of her obfuscatio­n. The West Australian reported last Thursday that a “handful of Liberal MPs” had told the newspaper “they wanted a full probe into their colleague to ensure her loyalties were not divided between China and Australia”. There was, according to one MP, a “sense here … that there should have been concerns when she was being chosen to stand as a candidate and I believe those concerns were ignored”. The Liberal Party’s vetting processes were criticised and “sooner or later we have to take off the rose-coloured glasses about what is happening”.

In the senate, Penny Wong successful­ly won the numbers to have Mathias Cormann explain to parliament the government’s support of Liu. She asked for the government’s response to the allegation­s, and for assurances to the senate that Liu is a “fit and proper person to remain a member of the Australian parliament”. In response, she got only more support for Liu from the government with no explanatio­ns. An angry Wong quoted The West Australian’s report, noting it was “[Andrew] Hastie’s home-town paper”. Hastie is the chair of the influentia­l parliament­ary joint committee on intelligen­ce and security and an outspoken China hawk. Indeed, he and the committee’s deputy chair, Labor’s Anthony Byrne, have both been mightily concerned by the informatio­n conveyed to them in confidenti­al intelligen­ce briefings from our spook agencies.

In the past, it was always a feather in the cap of a prime minister to be able to strike up a close personal relationsh­ip with the incumbent US president. Scott Morrison seems almost apologetic for the star treatment he is receiving from Trump. This is not surprising, considerin­g the president’s unpredicta­bility and capricious dealing with other American allies – Britain’s Theresa May is just one example. Before he flew off, Morrison was keen to stress how the importance of the relationsh­ip between our two nations transcends leaders’ personalit­ies. And he insisted in a number of interviews that he would be pursuing Australia’s interests. But the Chinese don’t believe it; they see Trump as the puppetmast­er. Cartoons in Chinese state media certainly portray it this way.

Morrison sees the fact that we have stood side by side with the US “in every major conflict since the First World War – in the defence of freedom, liberty and democracy” as evidence of the strength of the relationsh­ip. The fact is Australia has been, in some of those conflicts, simply more willing than others to do America’s bidding. The assignment of a naval ship and a surveillan­ce aircraft to the Strait of Hormuz, aimed at thwarting Iran, is the latest example.

The escalation of tensions in the region – with Trump warning the US is “locked and loaded”, or at other times “cocked and loaded”, referring to a gun ready to fire at Iran – is a worry. Morrison says he’ll be discussing it with Trump but it’s “very premature” and no one has asked Australia to offer further military support.

It brings to mind that old curse, often attributed to

• the Chinese: “May you live in interestin­g times.”

THE HOOPLA IN AMERICA FOR THIS MORRISON VISIT WILL DO NOTHING TO HELP HIM MANAGE THE STRAINED RELATIONSH­IP WITH BEIJING. THE TRUMP ADMINISTRA­TION IS NOT LOOKING FOR NUANCE FROM AUSTRALIA BUT FOR IT TO CHOOSE SIDES.

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