Australia’s relations with its greatest buying and selling accomplice China has gone by a downward spiral lately. Earlier prime ministers made the nation the first to formally ban Huawei gear from its 5G community and barred international political donations over issues of Chinese language affect. Relations hit a low level when the Australian authorities, underneath then-Prime Minister Scott Morrison, referred to as for an investigation into the origins of the COVID-19 virus.
Beijing’s response was additionally heavy-handed: It imposed tariffs and blocked imports on a variety of Australian items, like wine, barlet and coal.
However ties between the 2 international locations has improved underneath present Prime Minister Anthony Albanese, who took workplace in 2022. Over the weekend, China premier Li Qiang stated that the connection is now “back on track after a period of twists and turns.” Li is at present in Australia on a four-day go to, the primary by a Chinese language premier in seven years.
The Chinese language premier arrived in Australia late on Saturday. He met Albanese in Canberra on Monday the place the 2 had a “candid in-depth and fruitful meeting and reached a lot of consensus” in line with feedback from Li to reporters after the assembly. Li additionally introduced that Beijing will add Australia to its visa-waiver program, which permits a visa-free journey interval of 15-days.
Li’s go to follows a visit by Albanese to Beijing in November, the primary by an Australian chief in a number of years.
Icy relations between China and Australia are thawing
Exports of Australian items to China hit 219 billion Australian {dollars} ($144.4 billion) in 2023, larger than the $98.4 billion exported in 2019, earlier than the COVID-19 pandemic and the imposition of tariffs in line with information from the Australian authorities.
Since final yr, Beijing has step by step lifted its taxes and commerce restrictions on items like barley, beef and wine.
These taxes have damage Australia’s meals producers. For instance, Australia exported 1.1 billion Australian {dollars} ($726 million) of wine to China in 2019. Australian wine made up 1 / 4 of all wine imports on the time. Commerce plummetted after Beijing imposed tariffs that reached as excessive as 200%: Australian wine accounted for simply 0.14% of Chinese language wine imports within the first six months of 2023.
But Beijing continued to purchase uncooked supplies from Australia, even because it clamped down on client items. China depends on Australia for items like iron ore and liquefied pure gasoline (LNG)
Australia is the world’s largest exporter of iron ore, a lot of which matches to China. Iron ore exports have been price $19.2 billion and accounted for 62% of Australian exports to China within the first quarter of this yr, in line with information compiled by ANZ Analysis.
LNG exports to China, valued at round $3.6 billion, accounted for 12% of Australia’s complete exports over the identical interval.
Australian coal exports additionally rebounded after Beijing lifted its restrictions on Australian coal final January. Coal shipments, measured by way of worth, surged 118% year-on-year throughout the first quarter of 2024.
On Sunday, Li promised a extra symbolic instance of warming ties between Beijing and Canberra. On a go to to the Adelaide Zoo, Li supplied to ship two new pandas to Australia, changing the 2 returning to China later this yr.
