SYDNEY (Reuters) - Australia’s top central banker said on Wednesday it was “important we avoid escalating” political issues as the country finds itself in a diplomatic hot water with China, its biggest trading partner.
Reserve Bank of Australia (RBA) Governor Philip Lowe made the comment in response to a question on the risk of economic fallout from the tension between the two nations.
He was speaking at the Australia-China Relations Institute in Sydney.
Relations between the two countries have cooled since late 2017 when Prime Minister Malcolm Turnbull’s government proposed a bill to limit foreign influence in Australia, including political donations. Beijing saw the move as “anti-China”.
Reporting by Swati Pandey; Editing by Richard Borsuk