China punished Australia's loyalty to America, Scott Morrison tells US Congress committee

Australia Broadcast Center

23-07-2025

Scott Morrison has appeared before a committee of the US Congress to implore America to "never become casual" about the economic threats posed by China and its willingness to weaponise trade.
Pointing to China's "targeted and illegal trade bans and diplomatic estrangement" when he was prime minister, Mr Morrison said Australia had been punished for its loyalty to the US and now had many lessons to offer the Americans.
And — without explicitly mentioning the up-ending of trade relationships caused by the Trump administration's tariffs program, or its AUKUS review — he argued for tighter ties between Australia, the US and like-minded democracies to better ward off any threat.
"Above all, I would highlight the need to never become casual about the potential threat and to remain vigilant," he told the Select Committee on the Chinese Communist Party (CCP).
"Strengthening and deepening the networks of US alliances and partners is critical to resilience and deterrence. This is as true in the economic sphere as it is in the security sphere."
Mr Morrison was invited to give evidence before the bipartisan committee, which was formed in 2023 to assess the CCP threat and "develop a plan of action to defend the American people".
Since its formation, it has been sounding alarms on America's economic dependence on China, particularly for mineral exports such as the rare earths widely used in modern technology.
"China can so much as flick a switch and cause major damage to the American economy," the committee's top Democrat, Raja Krishnamoorthi, said.
Mr Morrison told the committee China changed tactics after Australia's 2022 election, when the Labor Party defeated the incumbent Coalition.
The CCP was now using "inductive engagement laced with charm and flattery" to try to manipulate Australia and isolate the US in the region.
He said diplomacy with China would never lead to effective solutions.
"We have to be clear-eyed about this and not pretend that somehow this is going to be resolved through discussion," Mr Morrison said.
The committee's other witness, former US ambassador to Japan Rahm Emanuel, said: "Australia's response to China's coercion is the best example to try to replicate going forward."
He argued America and its allies should form a new "anti-coercion coalition" with the "economic equivalent" of NATO's Article 5 clause, which states that an "attack on one is an attack on all".
But he warned America's current trade policies meant it risked motivating a similarly united retaliatory response from its partners.
He pointed to action taken by the EU after China imposed trade restrictions on Lithuania over the Baltic state's Taiwan policy.
"The only time they've thought of deploying that unity now was with the United States because of how we're negotiating with the EU," he said.
"So it was designed with China in mind, but … now may be deployed with us."
The committee's bipartisan leadership praised Australia's refusal to fold in the face of "economic coercion" from China during Mr Morrison's time in government.
They included tariffs on Australian barley, bans on products from Australian meatworks, halts on timber, coal and lobster exports, and a 220 per cent tariff on Australian wine.
They were widely seen as politically motivated, including as retaliation for an Australian inquiry into the origins of COVID-19. The CCP insisted they were the result of investigations into Australian trade practices.
At one point during Wednesday's hearing, Mr Krishnamoorthi held up a bottle of South Australian shiraz. "This wine has been called 'freedom wine,'" he said.
"The pain of what was done, particularly to our wine industry, was real," Mr Morrison said.
"Yes, there was some 'freedom wine' sold, but not enough to make up for that impact.
"And so if you're going to stand up here, you have to be prepared to take a few hits in the process. But you're much more able to do that if you can take hits with your mates, and your mates have got to show up as well."
Mr Morrison said he had "no doubt that the primary objective of the PRC's targeting of Australia during this time was to make an example of Australia as a key US ally in the region, to punish Australia as a warning to others".
He said the formation of the AUKUS pact with the US and the UK was a key part of the response.
A day before Mr Morrison's appearance, the committee's leaders released a letter they had written in support of AUKUS to Defence Secretary Pete Hegseth.
"We must double down on the efforts that Beijing fears the most, including AUKUS," the committee's Republican chairman, John Moolenaar, told the hearing.