Don’t count on China changing: PM

Prime Minister Scott Morrison has offered a pessimistic view of Australia repairing diplomatic relations with China in the years ahead while encouraging businesses to continue engaging with the people’s republic.

Australia and China have been at a diplomatic crossroads since the start of the COVID-19 pandemic, when Mr Morrison became one of the first proponents of an international investigation into the origins of the virus’ spread.

Diplomatic relations between the two countries have faltered since then with China imposing a series of punitive tariffs on Australian exports in retaliation.

Addressing a Chamber of Commerce and Industry of WA event this morning, Mr Morrison said Australia must be resilient and that it was sound for businesses to diversify their risks as a result of changing circumstances.

“There have been significant opportunities in the Chinese market in the past,” he said.

“But the China we’re dealing with today is very different to the one John Howard dealt with, and many of my predecessors did.”

Mr Morrison went on to cite China’s unwillingness to denounce or criticise Russia’s invasion of Ukraine as evidence the relationship had changed, and argued businesses should keep this in mind when assessing risks in international markets.

“I’d love to tell you that there will be a massive change in that relationship in the next few years, but I can’t do that,” he said.

“That’s not because of Australia.

“We’re not the ones who’ve chopped off diplomatic discussions at a leader level or ministerial level. We’re not the ones who’re applying bans on their exported products. We’re not the one who’s insisting that they open to more foreign investment in their country.

“We have a liberal democracy and a liberal economy that has facilitated investment on our terms, and we’ll continue to do that.”

Still, while Mr Morrison noted select industries had borne the brunt of ongoing trade tensions, he said ongoing trade volumes proved the economic relationship between both countries continued to be of mutual interest.

“Where that continues to occur, I imagine that trade will continue, and the ongoing engagement between private industry and business with markets like China is very important and I would continue to encourage that,” he said.

“Obviously, at a political and a diplomatic level the situation is very different because Australia has faced very real coercion and threats and foreign influence in this country that we’ve called out.

“As an Australian, I’m very proud of the role that our government has played in calling this out.”

Polling woes for federal Libs

Mr Morrison's address comes as newly released polling from the Greens and former Labor adviser John Utting has purported to show a collapse in the Liberal Party's primary vote in WA.

Insiders in both major parties believe Labor has a reasonable chance of winning Swan, Pearce and Hasluck at the upcoming federal election, with newly released data suggesting notionally safe Liberal seats such as Tangney, Moore and Canning could also be up for grabs.

Mr Morrison was keen to avoid criticising Premier Mark McGowan in today's address while repeatedly taking credit for providing funding to the state's health system.

He was less keen to give concessions to the federal opposition, criticising the ALP for what he characterised as its softness on the GST deal.

Opposition Leader Anthony Albanese has previously said he supports WA getting a "fair share" of GST revenue.

"[T]he election is not far away, and it's time they started coming clean with the Australian people," he said.

"But you know where we stand, and particularly on the issue of GST, because we just didn't agree with someone else about it after the fact and after all the hard work was delivered and it was done."