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Artificial intelligence cold war heats up for Australia

Artificial intelligence cold war heats up for Australia

If there were any doubts about the gravity of the global battle for technological supremacy between China and the United States, then read the Chinese ambassador's opinion piece in The Australian Financial Review.
With Prime Minister Anthony Albanese just days away from visiting Beijing, China's envoy, Xiao Qian, lays out his country's economic objectives and how they might shape the relationship with Australia.
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China wants AI in expanded trade deal with Australia
China wants AI in expanded trade deal with Australia

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China wants AI in expanded trade deal with Australia

Strengthening ties between Chinese and Australian artificial intelligence researchers could be on the agenda when the prime minister visits China this week, as Beijing seeks to capitalise on trade tensions with the US. With President Donald Trump's tariffs straining relations with Australia's traditionally closest ally, China's top diplomat in Australia Xiao Qian has called for greater collaboration in fields like AI, healthcare and green energy under a revised free-trade deal between the two nations. Prime Minister Anthony Albanese's visit to China on Saturday comes as the Sino-Australian relationship continues to build following a downturn in relations under former Liberal prime minister Scott Morrison. "China and Australia are natural partners with complementary economic strengths," Mr Xiao wrote in an opinion piece published in the Australian Financial Review on Monday. "Standing at a new historical starting point, now is the time to advance bilateral relations with steady progress." Trade volumes between the two nations have bounced back after China lifted sanctions on Australian exports. The ambassador believes Mr Albanese's visit marks an opportunity to broaden the terms of the 10-year-old free-trade agreement. "We are willing to review the agreement with a more open attitude and higher standard, further consolidate co-operation in traditional areas such as agriculture and mining, and actively explore new growth areas in emerging fields like artificial intelligence, healthcare, green energy, and the digital economy, elevating practical co-operation to new heights," Mr Xiao wrote. The promotion of AI ties, amid the Albanese government's agenda to boost productivity, follows similar provisions in recently signed trade deals between Australia and partners such as Singapore, the UK and the UAE. These clauses encourage sharing AI research and commercialisation opportunities between the countries, as well as promoting its responsible use. There are attractive opportunities to deepen research collaboration in the fundamental science of AI, even though there are challenges to expanding the use of Chinese AI programs in Australia, said UNSW Professor Toby Walsh. "It's going to be very hard for us to have too deep relationships within terms of AI, because you can touch upon things like data sovereignty and various other things that we value," the AI expert told AAP. "It's not like just sending them gold and they take it, and that's the end of the partnership. "Sharing technologies like AI could pose significant national security and other risks." Allowing Chinese tech companies access to the Australian market has been a sore spot in the bilateral relationship. In 2018, then-Liberal prime minister Malcolm Turnbull banned the Chinese tech giant Huawei from developing 5G infrastructure in Australia over concerns the Chinese government could force the company to hand over Australians' data or interfere with the network. The decision prompted strenuous protests from Beijing and was a factor behind a subsequent diplomatic fallout. Prof Walsh said there were still areas where collaboration could be beneficial without forfeiting Australian security. "It's about exchanging people, it's training, it's us going to work with them and them coming to work with us," he said. "So it's things that we've always done in terms of scientific exchange, supercharging our science, supercharging their science, and then building our own business off the back of that scientific knowledge. "China will be interested in partnering with us. "We have wonderful medical data, and we have a joined-up healthcare system. "There's huge value in those national data sets we have that no one else has." As the US drives a wedge through a fragmenting global order, Mr Xiao framed China as a like-minded partner for Australia - one that shares Australia's interests in pushing back against unilateralism and protectionism. China is willing to work with Australia to strengthen multilateral organisations like the United Nations and ASEAN, safeguard regional peace and the international rules-based order, and advocate for free trade, the ambassador said. Assistant Trade Minister Matt Thistlethwaite said the government was seeking to strengthen access to China - Australia's largest trading partner - in the best interests of Australians.

Nationals Leader warns against the ‘unintended consequences' of AI
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National Leader David Littleproud has warned against the "unintended consequences" of Artificial Intelligence amid China urging Australia to adopt the technology more quickly. "While the reality is it is encouraging that the Chinese government wants to enrich our trade, we also need to understand the unintended consequences, like AI, where that environment hasn't fully matured," Mr Littleproud told Sky News Australia. "We should be able to work with China to enrich our trade, that is one way in soft diplomatic terms to keep stability in our region, but just understand the consequences of particularly emerging technologies and what that might do."

China ties should not come at ‘expense of the US': Barnaby Joyce
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China ties should not come at ‘expense of the US': Barnaby Joyce

A Coalition heavyweight has called on Anthony Albanese to prioritise the US alliance, warning that countering China without Washington's backing would cost Australian 'hundreds of billions'. It comes ahead of the Prime Minister's state visit to China next week. Mr Albanese will meet Xi Jinping for a fourth time since 2022. Meanwhile, a firm date for a face-to-face with Donald Trump is yet to be set. Nationals MP Barnaby Joyce said on Monday Mr Albanese was playing a 'very dangerous' game. 'The Prime Minister must have a great hand of cards because he has really got the chips on the table on this one,' the former deputy prime minister told Seven's Sunrise. 'You need to understand the United States is the cornerstone of our defence … it is not going well. 'This is the fourth meeting he has had with the leader of China but that is a totalitarian regime.' Mr Joyce said he was 'truly concerned' that Mr Albanese has not met the US President, pointing to the Trump administration's snap review of AUKUS. China is Australia's biggest trading partner, with two-way trade worth $325bn in 2023-24. The Albanese government has negotiated the removal of some $20bn in residual trade barriers from the Australia-China trade war waged under the former Coalition government. At the same time, it has pumped billions into countering Beijing's influence in the Pacific and committed tens of billions to defence spending. Asked if it was not good for Australia to 'make friends with China', Mr Joyce said it should 'but not at the expense of the US'. 'You need to understand that we live in the realm of the Western Pacific,' he said. 'If things go pear-shaped, we are in trouble – real trouble. 'If we … have a defence policy that doesn't include the United States, we need to spend hundreds of billions of dollars on defence. 'We are way, way behind where we need to be.' China's AI ploy China has presented itself as a 'natural' partner for Australia amid tensions between Canberra and Washington. The alliance has been strained by Mr Trump's tariffs and Mr Albanese's resistance to hiking defence spending. In an opinion piece published on Monday, Chinese ambassador Xiao Qian said China had 'always viewed Australia … from a strategic and long-term perspective'. 'China has been Australia's largest trading partner, largest export destination and the largest source of imports for 16 consecutive years,' Mr Xiao wrote in the Australian Financial Review. 'With a population of more than 1.4 billion, including more than 400 million middle-income earners, China provides a vast and stable consumption market for Australian minerals, wine, beef, lobster and other products.' Pointing to the 10th anniversary of the China-Australia free trade agreement, he said Beijing was 'willing to review the agreement with a more open attitude'. Mr Xiao said that included bolstering 'co-operation in traditional areas such as agriculture and mining' but also exploring 'new growth areas in emerging fields like artificial intelligence, healthcare, green energy, and the digital economy'. China is engaged in an AI race with the US. The launch of DeepSeek in January dealt the first serious blow to the US' global leadership in the space, with the ensuing tech sell-off wiping about $US1 trillion ($A1.5 trillion) in value off American titan Nvidia. Mr Xiao also said China wanted to step up co-operation in the Pacific. Albo's scores big with football diplomacy 'Both China and Australia are major countries in the Asia-Pacific region, beneficiaries and defenders of the post-war international order,' he said. He said China was 'willing to work with Australia to build consensus on international and regional issues'. That included finding ways to 'jointly safeguard regional peace and stability, uphold international rules and order, advocate for free trade' – a tough task when Australia and its Pacific neighbours view China as the greatest threat. Originally published as China ties should not come at 'expense of the US', Coalition heavyweight warns

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