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Australia Faces China’s Warning After $13 Billion Minerals Deal

Beijing has warned Australia against engaging in “bloc confrontation” after Anthony Albanese struck a $13 billion critical minerals deal with Donald Trump.

Australia has received a stark warning from Beijing regarding its recent agreement with the United States. Prime Minister Anthony Albanese secured a $13 billion critical minerals deal with former President Donald Trump, who also endorsed the AUKUS submarine partnership. In a statement made just before departing Washington, Albanese emphasized that Australia’s alliance with the US is “stronger than ever before,” but this assertion seems to contradict Trump’s claim that AUKUS serves as a deterrent against China’s military expansion in the Indo-Pacific region.

During a press briefing, Guo Jiakun, spokesman for China’s Ministry of Foreign Affairs, reiterated the country’s longstanding opposition to the AUKUS defense agreement. He warned against “bloc confrontation,” which he believes could escalate tensions and increase the risk of nuclear proliferation. Guo stated, “We oppose bloc confrontation and anything that increases the risk of nuclear proliferation and exacerbates the arms race.”

The deal between Australia and the US includes a commitment for both countries to invest $1 billion into priority critical minerals projects within six months. Trump noted that this initiative aims to break China’s dominance in the critical minerals market, a crucial component for advanced technologies and military applications.

In response to these developments, Beijing is positioning itself as a responsible global supplier of rare earths and critical minerals. Guo emphasized that global supply chains are shaped by market choices and that countries rich in critical minerals should ensure stability in trade relations.

When asked if AUKUS serves as a deterrent against China, Trump expressed agreement but also suggested that he does not foresee a conflict between the US and China over Taiwan. He stated, “I think we’ll be just fine with China. China doesn’t want to do that,” adding, “I think we’ll end up with a very strong trade deal. Both of us will be happy.”

Albanese refrained from commenting directly on Trump’s statements. He told reporters, “I think that his comments of course were very constructive.” He further clarified that the AUKUS agreement focuses on Australia’s national security, stating, “It’s not about one country… It’s about a more secure and peaceful Indo-Pacific region.”

As Albanese concluded his two-day trip to Washington, he faced an unexpected delay when his aircraft made an urgent stop in St. Louis, Missouri, due to an injury to a crew member. The trip also included discussions regarding ongoing enhancements to the AUKUS agreement, as revealed by new US Navy Secretary John Phelan. Phelan indicated that the Pentagon’s “America First” review seeks to improve the original agreement and eliminate ambiguities.

The leaders of the AUKUS alliance are scheduled to meet again at the APEC summit in South Korea next week. Albanese expressed anticipation of seeing Trump sooner at the ASEAN summit in Malaysia.

Australia’s acquisition of submarines through the AUKUS partnership is projected to exceed $300 billion. In line with the agreement, Australia will allocate an additional $1 billion this year to enhance US shipyards, facilitating faster construction of the Virginia-class submarines.

Before Albanese’s return to Australia, tensions escalated between the two nations. Beijing has criticized the Australian military following an incident involving an RAAF aircraft in the South China Sea. The Australian government accused the People’s Liberation Army (PLA) of unsafe conduct after a PLA fighter jet released flares near an RAAF P-8 Poseidon surveillance plane close to the contested Paracel Islands.

The PLA responded, accusing Australia of illegally intruding into Chinese airspace. Senior Colonel Jiang Bin, spokesperson for China’s Ministry of National Defence, described Australia’s statements as “a blatant distortion of facts” and indicated that formal complaints have been lodged.

When asked if he would address the incident directly with President Xi Jinping, Albanese confirmed that the Australian government has already raised the issue with Chinese authorities in both Beijing and Canberra.

The evolving dynamics between Australia, the US, and China highlight ongoing geopolitical tensions and the delicate balance of power in the Indo-Pacific region.

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