Australia's relationship with China has worsened markedly in the seven years since NSW sold Newcastle port to a company half-owned by Chinese interests, but Deputy Premier and Trade Minister John Barilaro says it was the right call.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Speaking at a funding announcement in Newcastle on Friday, the Nationals leader said China was still an important market for NSW and Australia and "their investment dollar is important in this state".
"As the trade minister, I've got to be honest, the best way we can fix the problem with China is just show a little bit of respect in both directions," Mr Barilaro said.
"We're not going to agree on everything, and we're entitled to disagree.
"We shouldn't shy away from investment, regardless whether it's from China or from anywhere else in the world, because it actually benefits Australia."
The state leased the port in 2014 to Port of Newcastle, a consortium owned by China Merchants and The Infrastructure Fund, for $1.75 billion over 99 years.
The Chinese government has banned or curbed a range of Australian imports in recent months after Australia called for an inquiry into the origins of COVID-19.
The West sees China as a growing geopolitical threat, but Mr Barilaro expected the trade tensions to blow over.
"I am confident that in six months, or it could be 12 months, could be 18 months, those relationships will get stronger again," he said.
"They're being more assertive, but that doesn't mean we should just walk away from the table.
"We've got to live with China in this region, not just today but for generations to come.
"They have every right to have their view and opinion."
He said former president Donald Trump and the US had "probably caused a lot of pain for the world in relation to our relations".
"What we've got to do is pause, breathe, stand up for what is right for Australia and what we believe in.
"We don't have to be bullied, I accept that, but we should do it in a respectful way."
Mr Barilaro joined Newcastle Labor MP Tim Crakanthorp in announcing the 11 recipients of $1.14 million in grants from the Newcastle Port Contribution Fund, paid for by a provision in Port of Newcastle's lease.
Port fund recipients
- Hunter rescue helicopter service Birdman Challenge event $20,000.
- SailFest Newcastle Regatta 2021 community sailing $40,000.
- Customs House time ball and clock restoration and lighting $85,000
- Electric car for Mission to Seafarers Newcastle $54,000.
- City of Newcastle Foreshore Park playground $500,000
- Fortress Newcastle Exhibition $27,000.
- University of Newcastle Honeysuckle smart shelters $162,000.
- Seabin litter prevention workshops $38,445.
- Stockton Lions Park Memorial $15,000.
- Throsby Creek walkway solar lighting $182,310.
- William the Fourth sails reinstallation $15,176.
City of Newcastle was the largest benefactor, receiving $500,000 for a new playground in Foreshore Park.
Other major winners were the University of Newcastle, which won $162,000 for "smart" shelters outside its new building in Honeysuckle, $182,000 for solar lighting along the Throsby Creek Walkway and $85,000 to restore the Customs House time ball and clock.
The state responded to concerns about government agencies, most notably UrbanGrowth NSW and Hunter Water, receiving too much money from the fund in recent years.
The government has changed the fund's rules so that at least 75 per cent of the grants go to community and not-for-profit organisations.
"We redesigned the criteria to make sure that we were supporting communities," Mr Barilaro said.
The council, which has received almost $2 million from the fund, is classified as a community organisation.
For faster access to the latest Newcastle news download our NEWCASTLE HERALD APP and sign up for breaking news, sport and what's on sent directly to your email.
IN THE NEWS: