Australia sidesteps US tensions to seek closer China trade ties

The Star

10 hours ago

BEIJING: The prime minister of Australia, a longtime US security partner in Asia, sought to focus his trip to China this week on business and trade opportunities, dodging thornier issues around US-China competition such as Taiwan or Beijing's military expansion.
Since taking office just over three years ago, Anthony Albanese has repaired his country's relationship with China, the market for about one-third of its exports, after suffering Beijing's punitive tariffs and other restrictions during the pandemic.
Now, however, President Donald Trump's renewed trade war between the US and China risk again destabilising those ties, as they do for Japan, South Korea, the Philippines and others in the region who look to Washington for security but to China for trade.
"Given that China is overwhelmingly, by far, the largest trading partner that Australia has, it is very much in the interests of Australian jobs and the Australian economy to have a positive and constructive relationship,' Albanese said Tuesday (July 15) after meeting President Xi Jinping.
The Chinese leader was equally enthusiastic: "The China-Australia relationship has risen from the setbacks and turned around, bringing tangible benefits to the Chinese and Australian peoples,' he said, obliquely referring to the tensions before 2022.
The leaders seemingly both avoided any tricky security-related issues, including the potential forced sale of the port of Darwin by its Chinese owner, given its proximity to where US Marines exercise. Albanese said the issue didn't come up.
Neither, he said, did complaints about Australia's foreign investment regime, which has blocked a number of proposed purchases by Chinese firms, nor reports that the US has pressured Canberra about its role in any potential war over Taiwan.
On Taiwan, Albanese said he reaffirmed his nation's commitment to the "status quo' - support for the island's de facto autonomy without endorsing formal independence and maintaining recognition of the One China policy. His remarks highlight Australia's opposition to any unilateral move, especially by force, to alter the cross-strait balance.
Chinese state media has been positive about the trip, with an editorial Monday in the China Daily saying that it highlights "Australia's commitment to deepening ties and fostering stability amid the uncertain global landscape.'
"Against the backdrop of rising tensions between the United States and many countries because of the US administration's recent threat to levy higher tariffs' his visit "shows that the Australian side has a clearer judgment and understanding of China' than the previous government of former Prime Minister Scott Morrison, the editorial said.
"The progress made in their economic and trade cooperation in the past two years has benefited the people of both countries, and provided a counterweight amid the rampancy of unilateralism and protectionism,' it said.
Albanese took pains to argue that his government wasn't looking to China to make up for the changes to US trade policy under Trump.
"Trade with the US is important, but is less than 5%' of what the country sells, he said.
"What Australia is doing is engaging not just with China, but we engage as well with our partners around the world and we increasingly want to see a diversification of our trade.'
Albanese heads next to Chengdu on his six-day trip, which comes on the heels of visits by a number of Australian officials. Reserve Bank Deputy Governor Andrew Hauser travelled there in April, followed by Governor Michele Bullock in May.
The two nations are set to start a review of their Free Trade Agreement, which was signed a decade ago, Albanese also said Tuesday.
China's Ambassador Xiao Qian in an editorial last week called for a review "with a more open attitude and higher standard.'
While China bought almost US$62 billion (A$95 billion) of Australian goods in the first half of this year, managing the relationship is complicated by Beijing's increased assertiveness in the Asia-Pacific. In February, it conducted live-fire naval drills in the Tasman Sea, near Australia and New Zealand.
Albanese said at the time that he was concerned by the lack of notice from Beijing over the drills, which he also said were within the bounds of international law. He said Tuesday that he sought assurances from Xi about being better informed in the future. He didn't clarify if he received them. - Bloomberg