Australia’s Albanese to Emphasize Trade During China Visit as Relations Improve, According to Reuters

By Kirsty Needham

SYDNEY – Prime Minister Anthony Albanese is set to emphasize trade as a key element for enhancing relations during his historic visit to China, marking the first visit by an Australian leader in seven years. This visit comes as strained ties begin to normalize, according to business leaders.

Albanese will arrive on Saturday and participate in the opening of China’s largest import fair in Shanghai, where he will also address a sizeable business delegation the following day. During his meeting with President Xi Jinping in Beijing on Monday, he plans to voice concerns regarding increasing tensions in the South China Sea.

Since assuming office last year, Albanese’s government has been credited with stabilizing relations with Australia’s largest trading partner, especially after China lifted most trade barriers that were imposed following a diplomatic dispute in 2020, which resulted in a loss of A$20 billion in exports of commodities and food.

Despite Australia’s alignment with the United States, which has agreed to provide nuclear-powered submarines through a trilateral defense partnership with Britain, the AUKUS initiative, Albanese has highlighted the necessity of maintaining productive dialogue with Beijing.

"China is the source of our greatest security anxiety… China is also our largest partner, and we do value a productive relationship," Defence Minister Richard Marles stated during a press conference in Washington this week.

China accounts for a quarter of Australia’s export earnings, surpassing the combined contributions of the next three trade partners: the United States, South Korea, and Japan. "Trade as an anchor provides stability and certainty to allow greater engagement while we navigate uncertain currents and obstacles," remarked David Olsson, president of the Australia China Business Council.

More than 250 Australian businesses are set to showcase their offerings at the International Import Expo in Shanghai, which will be inaugurated by Premier Li Qiang on Sunday. These businesses include those that had previously thrived in the Chinese market, such as seafood, beef, and wine, alongside major iron ore exporters like Fortescue Metals, Rio Tinto, and BHP.

Olsson noted, "The Prime Minister’s participation in CIIE sends a strong signal to both the Chinese government and business community, likely fostering a more positive view of Australia as a trade partner."

Warwick Smith, chairman of the Business Council of Australia’s global engagement committee, added that Albanese is expected to underscore the complementary aspects of bilateral trade in his speech to approximately 500 business attendees on Sunday, emphasizing the importance of resumed dialogue.

Despite the encouraging tone of the visit, Australian Foreign Minister Penny Wong has indicated that relations will not revert to the state they were in even 15 years ago, a time when Chinese investment in Australia was robust. This year alone, Australia has rejected two Chinese proposals for investments in rare earth mines based on national interest considerations. In Washington last week, Albanese also sought to attract more U.S. investments in Australia’s minerals sector to decrease dependence on China.

China’s ambassador to Australia, Xiao Qian, commented in a local newspaper column that the relationship is at a crucial point, calling for enhanced cooperation in traditional sectors such as energy, mining, agriculture, education, and tourism.

Richard Maude, executive director of Asia Society Australia and a former diplomat involved in shaping Australia’s 2017 foreign policy white paper, expressed that the agenda for discussions between the Australian and Chinese leaders is extensive. He specifically highlighted the South China Sea tensions, particularly concerning China’s maneuvers in relation to the Philippines, as critical issues that need to be addressed. Maude also asserted that the Prime Minister must convey strong consequences for any attempt at forceful unification with Taiwan.

While the Albanese government has prioritized dialogue in its approach to China, much of the overall policy remains unchanged. "On the defense front, the Albanese government has intensified support for America in building a framework of military deterrence across the Indo-Pacific. This dual approach is clearly recognized by China," he explained.