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[/news/china/index.html China] has sensationally claimed that Australians are 'chronically racist' in the latest insult to come out of the communist state as relations continue to deteriorate.
The claim comes as the Xi Jingping's government threatens to destroy China's relationship with Australian universities, worth $3.1 billion in fees alone.
Education officials have already announced they will no longer recommend students study in Australia, and have threatened to divert thousands of students to the UK.
It leaves the $12 billion pumped into the Australian economy annually by Chinese students under threat, with China being the largest source of overseas enrollments. 
In an article on the Global Times, a mouthpiece for the Chinese government, said Australia has a 'chronic' problem with racism - encouraging students not to come.
It quotes a supposed University of Sydney student, saying 'even though the campus is safe, hanging out with friends and shopping could be dangerous.' 
Two women are seen wearing face masks in Melbourne on May 28 (pictured) amid claims Australia has become 'racist' towards Asian people
At UNSW (pictured), thousands of international students come from China, but this partnership could be under threat
It comes amid growing tensions between Australia and its largest trading partner, sparked by China's refusal to release vital information at the start of the COVID-19 pandemic. 
China has already imposed huge 80 per cent tariffs on Australian barley, a huge economic hit for farmers.
'In March, a Chinese student from Hong Kong was punched in the face and Sri Lanka Tours injured for wearing a face mask, and a pair of Chinese students were attacked by local gang members in broad daylight in April,' the editorial reads.
'Chinese business owners were also targeted, finding racist slogans outside their shops and restaurants, or their properties being vandalised.' 
At the University of Sydney (pictured) 69 per cent of its international students are from China
The University of Sydney (pictured) receives millions in fees from Chinese students every year
<div class="art-ins mol-factbox floatRHS news" data-version="2" id="mol-5b8849d0-ab60-11ea-a47d-ed25f5093e0e" website accuses Australia of being 'chronically racist' in latest hit