Australia out of favour with China

SYDNEY - Australian Foreign Minister Steven Smith Tuesday flagged further discord with China following tiffs over foreign investment rules, iron ore pricing, alleged industrial espionage and the visit to Australia of Uighur leader Rebiya Kadeer.

He told parliament that China had cancelled a visit by a senior official in response to Canberra’s decision to grant Kadeer a visa to visit a film festival in Melbourne.

US-based Kadeer is the exiled leader of the mostly Muslim Uighurs in Xinjiang in western China. At least 197 people were killed in clashes there earlier this year.

“China was most unhappy with her visit,” Smith said, noting that further sanctions could befall Canberra.

“If of course China takes any further action in response to our decision, that will be for us a matter of regret and we will deal with that sensibly,” Smith said.

Ties with China came under strain earlier this year when Canberra refused to welcome a bid by state-owned Chinalco to double its stake in Anglo-Australian mining company Rio Tinto. The bid was ultimately rejected by Rio.

China, unhappy at the handling of the negotiations over iron-ore shipment contracts, took into custody Shanghai-based Rio executive Stern Hu, alleging he had engaged in industrial espionage.

Further inflaming tension was the visit of Kadeer to attend the premiere of an Australian-made documentary about her life and work.

Opposition Liberal Party leader Malcolm Turnbull blamed famously Sinophile Prime Minister Kevin Rudd for the deteriorating relationship.

Rudd, a Mandarin-speaker and a former diplomat in Beijing, stands accused of frittering away goodwill.

“(Relations) are at the lowest ebb they have been for many, many years and Rudd has mishandled our relations with China,” Turnbull said.