China and Australia Reach Agreement to Improve Relations as Tensions Ease – Reuters

By Ryan Woo

BEIJING – President Xi Jinping stated on Monday that stable relations between China and Australia are beneficial for both nations and emphasized the need to enhance cooperation, indicating Beijing’s willingness to move past recent tensions.

During a meeting with Australian Prime Minister Anthony Albanese at the Great Hall of the People in Beijing, Xi expressed the importance of promoting the strategic partnership between the two countries through increased mutual understanding and trust. This meeting marked the first visit by an Australian leader to Beijing since 2016.

Albanese acknowledged the significance of a strong relationship for future collaboration, as their discussions extended beyond an hour. For years, China and Australia enjoyed a robust trade partnership, with China becoming Australia’s largest commercial partner, particularly in agricultural products and natural resources.

However, relations began to decline after Australia accused China of political interference in 2017. The following year, Australia implemented a ban on Huawei’s equipment for its 5G network, citing national security concerns. Further strain was caused by Australia’s call for an international inquiry into the origins of the COVID-19 pandemic, linked to Wuhan, which led to Beijing imposing restrictions on various Australian imports.

As tensions escalated, China advised its students against studying in Australia due to reported incidents of racism, impacting the lucrative education sector.

Earlier on the same day, Albanese visited the iconic Temple of Heaven in Beijing, where he took a commemorative photograph at the Echo Wall, a site significant to Australia-China relations as it was the location where former Prime Minister Gough Whitlam stood in 1973, shortly after the two nations established diplomatic ties.

“In China, we often say that when drinking water, we should not forget those who dug the well. The Chinese people will not forget Prime Minister Whitlam for digging the well for us,” remarked Xi.

Since becoming Prime Minister in May of the previous year, Albanese has taken steps to stabilize diplomatic relations, including a meeting with Xi at a G20 summit in Indonesia in November. In response, China began reducing trade barriers, allowing coal imports in January and ending tariffs on barley in August, with pledges to reevaluate tariffs on Australian wine.

Albanese noted that unimpeded trade would benefit both countries and acknowledged Xi’s agreement that Australian wine holds positive potential in China.

According to Chinese customs data, imports from Australia rose 8.1% between January and September compared to the previous year, reaching $116.9 billion. This follows a significant decline in imports, which fell by 12.7% to $142.1 billion in 2022.

Following their meeting, Albanese described the discussions as "very positive" and extended an invitation for Xi to visit Australia. Both leaders expressed the sentiment that their relationship should not be defined solely by differences, recognizing the importance of mutual benefit.

Despite these positive developments, challenges persist in their relationship. Australia’s support for a UN ruling that rejected China’s claims in the South China Sea has drawn Beijing’s ire, with China asserting that the issue is not Australia’s concern. Australia maintains that the South China Sea is crucial for its trade routes with Japan and South Korea.

Additionally, concerns about China’s assertiveness among Pacific island nations alarm Australia, while its security pact with the United States and Britain, known as AUKUS, has heightened Chinese apprehensions regarding containment.

“AUKUS didn’t come up explicitly. However, we discussed regional stability,” Albanese stated, without detailing specifics. He also raised concerns regarding the case of Australian writer Yang Hengjun, who has been imprisoned in Beijing for four years on espionage charges.