Disrespect to China endangering trade: Stokes

Updated

Billionaire Kerry Stokes has warned that Australia's trade with China is at risk because of Australia's poor attitude towards the country.

The Seven Network chairman has criticised Australian politicians for calling for political change during visits to China, describing them as disrespectful.

He says Australia's attitude towards the sale of Cubbie Station to Chinese interests has been deemed as racist by influential Chinese bloggers.

Mr Stokes, who was speaking at a conference on Australia-China relations in Sydney, says Australia needs to build a strong relationship with China to secure future trade.

"In the future there'll be other nations around the world who will challenge us by providing what we offer at far more competitive prices," he said.

"We want to be in a position then that prices are not the only reason that we trade with China, because in the future, [if] price is the only reason we trade with China, we will lose.

"Make no mistake, we will lose."

Mr Stokes says forging closer ties outside of mining is key to Australia's future prosperity.

"Resources are finite, so build services like education, business and tourism; the most renewable resource we have and we can share with them.

"University exchange is the best way of us being close.

"China still wants Australia to invest in China and they desire a partnership and they desire it to be built on respect and mutually beneficial outcomes."

'Xenophobic claptrap'

The comments were echoed by Treasurer Wayne Swan, who has called for an end to what he termed "xenophobic claptrap" about foreign investment from China.

Speaking at the same conference, he said Australia must stop fear-mongering about foreign investment from China because, for the first time in history, Australia will not share a language or history with the world's largest economy.

Mr Swan said the rise of China was one of the two defining economic events of our lifetime along with the global financial crisis.

He said the resources boom would endure despite commodity prices having peaked last year.

"While this transition will be difficult for some, we also need to understand that the resources boom will endure well beyond the boom in prices alone," he said.

Topics: world-politics, business-economics-and-finance, international-aid-and-trade, trade, agricultural-policy, australia, china

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