CHINA and Australia have made progress in returning to unimpeded trade and beginning of the 7th China-Australia high level dialogue was held in Beijing vividly reflected spirits of mutual respect, cooperation and protection of shared interests of both countries through involvement of main stakeholders comprising the senior representatives from industry, government, academia, media and the arts. Definitely, it tried to resolve a range of issues, including trade and investment, people-to-people links and regional and international security. It was constructive, comprehensive and productive for both sides because both sides sought to ease long-running diplomatic tensions and resolve trade blockages on billions of dollars’ worth of goods. The recently-concluded dialogue has contributed to Australia’s Comprehensive Strategic Partnership with China since it was first held in 2014. Moreover, holding of this dialogue after 2020 also represented another step towards increasing bilateral engagement and stabilizing bilateral ties. Evidently, the Chinese comprehensive diplomacy played an important role in the resumption of the dialogue.
It is good omen that Australian Prime Minister Anthony Albanese has accepted an invitation from Chinese President Xi Jinping to visit Beijing before the end of the year. The meeting of both was held on the sidelines of the East-Asia summit in Jakarta which confirmed the visit of Anthony Albanese to China. The relations between Beijing and Canberra have been under constant strain for the last few years. In 2020, following a sharp fall in bilateral relations between the two countries dialogue introduced to improve relations, was interrupted. The dialogue which was attended by high level officials from both countries tried to address issues, remove misunderstandings and barriers in communication and find commonality for further discussions. It is important that the relations between China and Australia have improved and successful holding of this dialogue will have ramifications beyond the region, as it has set a precedent for the other western countries to mend their differences with China and cooperate with one another for greater global cooperation.
The bilateral ties hit a new low after anti-China ideas started circulating and projecting throughout Australia, influenced by the west, and due to many complex and complicated external factors. However, ever since the labour party came into power in Australia their pragmatic approach ushered an opening for an immediate improvement in the relations with China. The dialogue discussed many issues including curbed trade exchanges and economic cooperation. It is hoped that after the dialogue would further enhance bilateral cooperation and collaboration between the two countries in the fields of green energy, lithium batteries, electric vehicles etc., Australia could benefit from rich Chinese expertise in these sectors. In this regard, both the countries have already been cooperating in exploring green hydrogen technologies, and Australian businesses have shown a strong reliance upon Chinese green hydrogen equipment due to its cost effectiveness. This shows that further collaboration in developing Australian green energy sector is possibility following improvement in ties.
Moreover, the accusations levelled against China of attempting “economic coercion” are unfounded and false. In the past, Australia banned Chinese enterprises and equipment and China just responded accordingly. Furthermore, China has already shown willingness to resolve all misunderstandings through discussion and is committed to resuming economic cooperation. Thus, the myth of economic coercion should be put to sleep and through this dialogue it should be ensured that there is fair and effective environment for business engagements.
It is important to note that the dialogue will also help boost people to people exchanges which in recent years have faced deterioration. It seems that the economic turbulence and high prices that Australia is facing has made them realize the importance of having trade ties with China and having access to Chinese markets. It should be stable and sustainable and Australian policy makers should avoid following the US’s China containment policy and should move away from being a pawn in US’ Indo-Pacific Strategy.
To conclude, China-Australia High Level Dialogue was an important event, a successful dialogue will help thaw the ice and reduce the friction between the two nations. However, in order to have successful engagement sincerity has to be shown by Australia, they have to leave anti-China rhetoric and should look to protect its own national interests rather than becoming a weapon for the US. The Australian side can seize this opportunity and build deep trust and put trade ties and economic relations back on the right track as it to act as impetus to improve bilateral ties.
China and Australia have agreed to resume high-level economic and trade dialogue mechanisms. Australia should make joint efforts to expand common interests, and address China’s concerns on the basis of equality and mutual benefit. Both economies are highly complementary and have fruitful economic and trade cooperation, therefore both sides should implement common ground reserving differences and promoting cooperation. On its part, China has already established a new development pattern through promotion of high-level opening-up, modernization, green transformation and qualitative industrialization which will bring new opportunities to countries around the world, including Australia.
China is ready to work with Australia to expand areas of cooperation, and it is hoped Australia will provide a sound business environment and treat Chinese companies and products fairly and justly. The two sides have recently made substantial progress in advancing bilateral economic and trade relations, and in the proper handling of each other’s key economic and trade concerns. According to China’s General Administration of Customs, China is the largest trading partner of Australia, and Australia is the eighth largest trading partner of China. Bilateral trade totaled $58.79 billion in the first quarter of 2023, up 10.9 percent year-on-year. Canberra should avoid Cold War mindset and ideological discrimination. Hopefully the prospective visit of Australian Prime Minister Anthony Albanese during 2023 would be game changer for strengthening of bilateral relations. The 7th China-Australia dialogue signals a promising chapter of collaboration, exemplifying the potential for renewed engagement and mutual benefit between the two countries.
—The writer is Executive Director, Centre for South Asia & International Studies, Islamabad, regional expert China, BRI & CPEC & senior analyst, world affairs, Pakistan Observer.
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