Australian PM Believes Breakthrough in Trade Relationship with China Is Possible

Australian Prime Minister Anthony Albanese reacts during Question Time at Parliament House in Canberra, Australia on March 30, 2023. (Martin Ollman/Getty Images)

Australian Prime Minister Anthony Albanese believed Australia would be able to make a breakthrough in resolving the trade war with China following a recent delegation to Beijing.

Trade Minister Don Farrell has returned after visiting China on the week ending May 14 to discuss with Chinese Commerce Minister Wang Wentao the possibility of Beijing lifting trade tariffs on some Australian commodities, such as barley, wine and lobster.

Despite no major development achieved during the trip, the prime minister said the in-person talks were a positive sign.

“The first step towards getting understanding and getting agreements is to have dialogue,” he told Adelaide radio station 5AA.

“It is a very positive thing that our Trade Minister Don Farrell ... was up there spruiking the benefit, which is a mutual benefit for Australia and China, of removing any impediments.”

Albanese noted that Farrell’s trip to China represented progress in resolving the two countries’  years-long diplomatic and trade disputes.

“Trade with China is worth more than the trade combined with the United States, Japan and South Korea. They are an important relationship for us,” he said.

“We are working cooperatively wherever we can, we will disagree where we must, but we are engaging in our national interest.”

Farrell’s Perspective on the Visit

In an interview with ABC Radio after returning from China, Farrell said he had a “warm and constructive” meeting with Wang.

While the minister believed it would not be long before Australia resumed the normal trade relationship with China, he said the disputes were not solved overnight.

“I don’t think they‘ll mysteriously disappear. I think if things go to plan, there’ll be a decision by the Chinese government,” he said.

“We’re hopeful that that decision will remove those tariffs, and we can get back to work to normal trade with barley.”

Farrell also declined to put any date on the process, saying there were many issues that Australia needed to work on, including biosecurity.

“My objective in this process is to simply persevere and persist so that at the end of the day, all of the trade impediments are removed,” he said.

Australian Trade Minister Don Farrell (left) speaks to China's Minister of Commerce Wang Wentao during a meeting via teleconference at Parliament House in Canberra, Australia, on Feb. 6, 2023. (Lukas Coch - Pool/Getty Images)

In addition, Farrell said Wang raised concerns about whether Chinese companies were treated fairly in Australia.

In recent years, the Chinese regime has been criticising Australia for blocking Chinese investment in important resources such as rare earth on the grounds of national interest.

“He (Wang) raised a series of pretty well-known issues. I think, on the Chinese side, he’s entitled to do that,” Farrell said.

“I pointed out to him that in the last financial year, we approved over 270 Chinese investments in Australia, totalling $4.28 billion (US$2.86 billion).

“It’s very clear that we welcome foreign investment from all countries overseas, and the Chinese are continuing to invest in Australia.”

Response from Relevant Parties

While Opposition trade spokesman Kevin Hogan said it was disappointing to see no major breakthrough, he noted that Farrell’s trip was a positive move towards resolving the trade disputes between the two countries.

“I publicly supported the trade minister’s visit to China as a positive step in the trade relationship thaw but nevertheless join the many exporters who are disappointed that it delivered no dividend in sanction relief,” he said.

“Australia has been a good faith actor in its engagement with China, reflecting the importance of the trade relationship and the longevity of our diplomatic relations.”

Meanwhile, Business Council chief Jennifer Westacott welcomed Farrell’s visit to China, saying it was important for the relationship to get back on track.

“China’s a different country than it used to be. But it’s a hugely important part of our economic future,” she said.

Westacott said while Australia needed to acknowledge the advantages of a vast Chinese market when enforcing its principle, it also should diversify into other markets.

“We’ve got to look at places like India and Indonesia, these huge markets that are growing,” she said.

“But China is a really important part of our future.”

On a related development, Chinese Foreign Minister Qin Gang is expected to travel to Australia in July despite the Chinese regime not having made any official announcement.