Treasurer Jim Chalmers is set to make history this week by becoming the first Australian government minister holding the crucial economic role to visit China in seven years, marking a potential improvement in strained bilateral relations. Chalmers is scheduled to embark on a two-day trip to Beijing on Thursday, following in the footsteps of the last Australian treasurer to visit China, Scott Morrison, who made the journey back in 2017.
Chalmers, appointed under Prime Minister Anthony Albanese’s administration after the 2022 general election, aims to co-chair the Australia-China Strategic Economic Dialogue with He Lifeng, the chair of China’s National Development and Reform Commission. The primary focus of the discussions during this visit will center around enhancing trade and investment ties between Australia and China, with an emphasis on fostering collaboration between businesses of both nations.
“This is another really important step towards stabilizing our economic relationship with China,” remarked Chalmers during a briefing in Brisbane. He highlighted that the Albanese government is engaged in systematic efforts to revive dialogue with China, Australia’s largest trading partner, following a hiatus since the last dialogue held in 2017. The bilateral relations between the two countries had significantly deteriorated in 2020 amidst tensions over the COVID-19 pandemic origin investigation proposed by the Morrison government.
The strained economic ties led to China imposing various bans, both official and unofficial, on Australian exports such as coal, cotton, wine, barley, beef, lobsters, and wood, resulting in substantial losses for Australian exporters amounting to billions of Australian dollars annually. However, with the change in government following the election, most of these trade barriers have been gradually removed.
While Australia continues to approach its trade relationship with China cautiously, efforts are being made to strengthen economic connections with other major nations, such as India. Indian Commerce and Industry Minister Piyush Goyal recently met with Australian counterpart Don Farrell to discuss progress on a new bilateral free trade agreement, building on a pact established in 2022.
Goyal expressed the significance of Australia’s relationship with India, emphasizing plans to elevate partnerships in various sectors including trade, investment, tourism, and technology. He announced the establishment of an office in Sydney that would oversee advancements in these areas, indicative of the commitment to expand cooperation between the two countries.
Australia has had a free trade agreement with China since 2015, a testament to the country’s ongoing efforts to navigate complex economic landscapes and foster mutually beneficial relationships with key global trade partners.