Communist Party of Australia

The China-bashing and hysteria being whipped up by Liberal Party leaders and sections of the media over the past two weeks are reminiscent of “the Russians are coming” anti- Soviet Cold War propaganda of the 1950s. Prime Minister Kevin Rudd was accused of being “too close to China”, described as “the roving ambassador for Beijing” and there were even suggestions that he is “the Manchurian candidate with a Chinese chip in his neck.” Even his fluency in Mandarin was used to rouse suspicions about his loyalty to Australia and the Western powers.

There was a beat-up about Chinese spy-rings and threats to Australia’s sovereignty, as if Australia, the US or any other Western power did not have spies in China. Defence minister Noel Fitzgibbon was also portrayed as a threat to Australia’s security because of his close relationship with a Chinese-born Australian businesswoman and the trips she funded for him to visit China where he was introduced to leading influential figures.

The accusations are politically based; they contain mix of racism, nationalism and anti-communism. The taunts of the Coalition and some writers in The Australian newspaper, in particular, reflect the backward, ignorant attitudes of the early 1970s when they refused even to recognise the People’s Republic of China.

It was the Whitlam Labor government that led the way internationally in recognising China. It had its eyes open to the realities of the world, to the opportunities that China offered and the role it would eventually play. It was the Hawke/Keating Labor government and the Garnaut report that they commissioned that acknowledged the reality that Australia was not in Europe, and that while politically and militarily its ties were with the US, its economic future lay in this region, South East Asia, in particular.

The reality is that while these reactionary forces were attacking the Australian government for its ties with China, the leading industrialised countries and more enlightened sections of the media were at the G20 meeting in London, seeking socialist China’s assistance to bail them out of a capitalist-caused global financial crisis.

The reality today is that the USA is economically dependent on China. China holds billions of dollars in US government bonds and other investments. If China were to pull the plug on the US, it would bring the world’s leading economic power to its knees. It has no desire to do this. China is working cooperatively with other nations to bring about recovery. China’s trade and investments are based on mutual benefit, as many poorer nations can attest.

China is one of the largest creditor nations in the world, one of only a few larger economies still experiencing growth and with the ready cash that banks are refusing to supply businesses.

The banks have put Australia’s mining companies on their at-risk list, citing the plunge in commodity prices and rapid decline in their profits. A number of foreign banks pulled out of Australia refusing to renew loans as they come due. Some companies have already folded. Rio Tinto has a debt of US$8.9 billion due in October and another of US$10 billion due in 2010.

With Chinalco’s investment offer of US$19.5 billion its debt would be wiped. Chinalco would have one seat on the board, not control over Rio Tinto. It would save Rio Tinto and thousands of jobs. Amid a crisis of overproduction, China with a financial interest in Rio Tinto’s performance, would be more likely purchase their ore from Australia than elsewhere.

The key question is not the nationality of money or investment capital. There is an alternative to private investment. Australia’s key resources should be owned and controlled by government. Public ownership and control opens the way for planned and environmentally sound mining and use, including control of export prices and processing in Australia.

Next article — Launch of the $100 Club

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