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Australia economically is resurgent however Australian politics are in chaos after Prime Minister Malcolm Turnbull resigned with a four way leadership showdown Friday. Australia has ruffled China with it's 5G decision to block Chinese carriers.


Australian Dollar Falls on Double Hit of Dutton and 5G Move

The decision to block Huawei and ZTE from the 5G network on national security grounds will have the affect of immediately derailing the federal government's attempt to reset relations with China after an extremely challenging year, trade wars and all . A joint statement from acting Home Affairs Minister Scott Morrison and the (now resigned) Communications Minister Mitch Fifield was careful not to mention China by name, saying the decision applied to all foreign carriers.

Just hours later the Chinese Commerce Ministry made a statement saying Australia's decision is a mistake and will have negative impact on bilateral business impacts.  China said they encourage businesses to cooperate according to international standards and market principles. The ministry added it hopes the Australian government will act in a fair and open way. 

The decision obviously plays into the trade war between the U.S. and China which continues to get uglier.

Meanwhile domestic poltics are a mess with PM Malcolm Turnbull in a leadership challenge after Peter Dutton challenged Turnbull again after a failed attempt two days ago after key members switched sides. Dutton is now in a three way race with Scott Morrison and Julie Bishop as challengers with the divisions that have ruptured the party set to continue. 

The moves have seen botht he Australian stock market and dollar sell off. Financial markets favor Morrison, while many see Bishop as better electoral choice. 

From a Sunburnt Country

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