The Australian’s Editor-at-Large Paul Kelly says Prime Minister Scott Morrison has got to put a floor under Australia’s deteriorating relationship with China because the potential damage to the economy is “simply enormous”.
“China is attempting to teach us a lesson, it’s engaged in major retaliation against us, it’s got something to prove, it wants to make sure China dictates the terms of this relationship, not Canberra,” Mr Kelly told Sky News host Peta Credlin.
“We don’t know exactly what Beijing’s end game is, but as far as Scott Morrison’s concerned, he’s got two objectives.
“He can’t surrender on basic principle, he can’t surrender on basic values, he’s not going to retreat on some of the fundamental policies.
“But he’s got to try and put a floor under this deteriorating relationship because the potential to do damage to the Australian economy is simply enormous.”