Australia Treasurer Visits Beijing to Discuss Trade, Investment, and Recent Stimulus: Reuters

By Lewis Jackson

SYDNEY – Australia and China have agreed to enhance their cooperation in investment, trade, and decarbonisation, according to Treasurer Jim Chalmers, who made a rare visit to Beijing on Friday. During this visit, he commended the recent stimulus packages announced by China.

Chalmers met for over three hours with Zheng Shanjie, the chairman of China’s National Development and Reform Commission (NDRC), where they discussed the various stimulus measures revealed this week.

"We are very pleased to see the Chinese authorities announce or signal the types of steps we have been hearing about publicly and in our private discussions," Chalmers stated during a press conference in Beijing. This visit marks the first by an Australian treasurer in seven years.

Australia’s substantial iron ore exports, primarily directed to China, play a crucial role in government revenue and are highly sensitive to fluctuations in demand from the world’s second-largest economy.

During their discussions, Chalmers and Zheng also covered topics related to trade, investment, and the potential for increased collaboration on decarbonisation, including initiatives like green steel.

The NDRC noted that their talks encompassed both countries’ growth prospects, policy formulation, and investment policies, with both sides committing to a transparent and efficient investment framework.

Relations between Australia and China deteriorated in 2017 after Australia alleged Chinese interference in its political affairs. Tensions escalated further in 2020 when Australia called for an inquiry into the origins of COVID-19, provoking China to impose bans on various Australian imports.

Since then, China has lifted nearly all of these trade restrictions following outreach efforts from Australia’s Labor government, which assumed power in 2022.