China obtained information on tax and foreign policy proposals from Australia’s three largest political parties in the lead-up to the latter country’s May general election, but Australia has kept the hack secret so as not to disrupt trade relations, according to multiple sources with direct knowledge. Canberra declined to comment; Beijing denied involvement. (Reuters)

Talking point: The spying allegations come amid a U.S.-China trade war that’s seen the superpowers put pressure on countries like Australia and Canada, which rely on trading relationships with both nations. China is Australia’s largest trading partner; it sends more than one million tourists and students to the country each year. Australian officials worried their economy would be damaged if they accused China publicly, according to sources who spoke with Reuters. Canada is already facing the economic effects of Beijing’s ire over the arrest of Huawei CFO Meng Wanzhou, but there’s more potentially at risk. China is Canada’s third-largest trading partner, and sent about 143,000 students to Canada in 2018. While Canada is making some moves to diversify away from China—including a new $30-million strategy focused on bringing in international students from other countries—its officials, like their Australian counterparts, appear to be trying to keep their heads down on the issue as Washington and Beijing remain at loggerheads.