When Treasurer Jim Chalmers travels to Beijing later this month, he and his counterpart at China’s peak economic agency, the National Development and Reform Commission, wo n’t be short on important topics to discuss.
The Gillard government‘s plan to sign the Australia-China Strategic Economic Dialogue, which is a component of a three-pronged deal in place in 2013.
The intention was to hold monthly discussions at the highest level. A Leaders ‘ Dialogue and a Foreign and Strategic Dialogue involving the two nations are also included in the contract.
The next time the official ties started to deteriorate was in September 2017.
After the Morrison state canceled the Victorian state administration’s Memorandum of Understanding to join in China’s” Belt and Road Initiative,” it was then officially suspended by Beijing in May 2021.
Its resurrected slowly, though. Under the Albanese authorities, leaders and foreign ministers have already been invited for mutual visits to stabilize the diplomatic relationship. However, it was n’t until June that the two parties signed a new memorandum to restart the dialogue.
Canberra and Beijing continue to talk, as evidenced by Chalmers ‘ ability to ensure the trip next Sunday. This is despite there being several problems with which they are at odds with.
For Chalmers, the focus will be getting a first-hand study on China’s struggling business and the challenges this provides to Australia’s personal outlook.
When he announced the visit, he made reference to a situation that his organization was tracking that could see the Commonwealth budget profits suffer a$ 4.5 billion loss as a result of lower prices for important commodities exports like iron ore and potassium.
Slowing Chinese expansion and falling item prices are undoubtedly never favorable for American income, but Chalmers is unlikely to make a comeback in a state of panic. According to the most recent business figures, China is still importing Australian iron ore and sodium in unprecedented or near-record quantities.
This suggests that a growing stockpile and a lack of need from other nations are at least as important in explaining recent price declines. And both are recovering from unusual price increases that have now reached levels that are more in line with historical averages.
The effect of Taiwanese growth on its need for American goods and services has also always been a plain, one-to-one relationship. That remains real now.
A complicated relationship
Australian wines export, for instance, are booming after Beijing removed taxes earlier this year.
China’s customs agencies put the value of imported Australian wine over the past three months at US$ 252 million, or around A$ 400 million ( US$ 268 million ). This topped the A$ 357 million sold over the past year to the US, Australia’s second-largest user.
Record numbers of learners from China are enrolling in American universities, though this is possible to decrease next season due to restrictions imposed by Canberra, no Beijing.
The large numbers of companies and officials who are attending the Australia-China Business Council’s Canberra Networking Day on Thursday show how strong China is still as a stand-out business.
Speeches are scheduled for commerce secretary Don Farrell, foreign secretary Penny Wong, dark commerce secretary Kevin Hogan, and dark foreign secretary Simon Birmingham.
Additionally, Chalmers may be concerned about raising the lingering buy ban that Beijing placed in place in 2020 for American lobsters. Trade Minister Don Farrell stated in June that he was “very convinced that the restrictions will be lifted in the near future.” A final solution might be announced during Chalmers ‘ visit.
China’s problems
For China, top of the list of problems will become Australia’s treatment of Foreign investors, especially in areas like essential nutrients. In the past, they have been welcomed but since 2020, there’s been an obvious de facto ban on more presence.
A recent study of Chinese firms in Australia found a general upbeat vibe. Nearly 80 % of respondents expressed optimism about the local business environment’s future. Still, while 72.5 % did not consider they had experienced discriminatory treatment, 42.4 % felt the enforcement of Australia’s laws and regulations lacked transparency.
It’s not hard to discover why. When Chalmers was asked in a question on Sunday to decide whether or not he wanted” China’s investment in crucial nutrients control in Australia,” he did not respond with a “no.” He also did n’t even offer a qualified “yes”
China will likely be looking for assurance that Canberra wo n’t impose tariffs on Chinese imports in a manner that is “like-minded” in comparison to Washington and some other capitals typically seen as “like-minded.”
This reassurance should n’t be difficult for Chalmers to provide. Unlike the US, Australia’s economic partnership with China remains largely comparable. Last season, Australia’s exports to China exceeded exports by A$ 110.7 billion.
And low-cost, high-quality imports from China, quite as electric vehicles, had been welcomed by the government amid a cost-of-living problems and the web no change.
Late last month, Chris Bowen, Australia’s Minister for Climate and Energy, hosted his Foreign equivalent for the 8th Australia-China Ministerial Dialogue on Climate Change in Sydney.
A bipartisan view
Republican support is also present for business with China. In March, Minister Farrell touted the potential for two-way trade to increase from A$ 300 billion to A$ 400 billion.
Not to be outdone, opposition leader Peter Dutton said in June he’d “love to see the trading relationship]with China ] increase two-fold”.
This year, Chalmers was right to claim that Australia’s partnership with China is “full of richness and full of opportunity.” His future trip can only aid in balancing the former and recognizing the latter.
James Laurenceson is director and doctor, Australia-China Relations Institute (ACRI), University of Technology Sydney
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