Reigniting the Flame: High-Level Economic Talks Resume
The diplomatic journey between China and Australia has been nothing short of a rollercoaster ride. Yet, a fresh gust of optimism is blowing across the diplomatic corridors with the recent visit of Australian Trade Minister Don Farrell to Beijing. This visit marked a significant milestone in the recovery and stabilization of China-Australia cooperation.
It included a landmark high-level economic meeting and a tour of Beijing’s Forbidden City. The 16th Joint Ministerial Economic Commission was co-chaired by Farrell and Chinese Commerce Minister Wang Wentao. This meeting marked the first of its kind since it was last held in Beijing in 2017. It holds symbolic significance in the revitalization of bilateral business relations and hints toward a positive trajectory in the future.
A Comprehensive Exchange: From Diplomacy to Trade
The ministers conducted a candid and comprehensive dialogue on a wide array of issues during the meeting. Discussions on the implementation of the common understandings reached during the leaders’ meeting in Bali were at the forefront. The agenda also included items like steadily developing bilateral economic and trade relations, managing trade concerns, and expanding practical cooperation.
Both sides agreed to revive economic and trade dialogue mechanisms such as the Free Trade Agreement (FTA) joint committee meeting and the high-level trade remedy dialogue. The focus also steered towards strengthening cooperation on green and low-carbon development. They expressed their support for the collaboration between the companies of the two countries in fields like digital trade and e-commerce.
A New Dawn in Bilateral Relations?
The resumption of high-level economic dialogue could mark the beginning of a new chapter in China-Australia relations. The past few years have seen escalating political tensions fueled by the former Morrison government and the COVID-19 pandemic, impacting the high-level exchanges between China and Australia.
The situation was further exacerbated in May 2021 when the National Development and Reform Commission (NDRC) announced the indefinite suspension of all activities under the China-Australia strategic economic dialogue. However, the recent developments have sparked hope for a potential reset of bilateral relations.
Looking to the Future: Expanding Cooperation
The consensus reached between the two ministers during the meeting sets the stage for addressing specific issues in the future. One of the key issues includes the “outstanding trade impediments” mentioned by Farrell ahead of his Beijing visit.
The significance of their talks extends beyond the economic level. It also opens doors for expanding cooperation into a broader range of areas. This is evident in Farrell’s tour of Beijing’s Forbidden City hosted by a senior Chinese Commerce Ministry official, a gesture seen as an encouraging sign by observers.
The Road Ahead: Opportunities and Uncertainties
The momentum for bilateral trade relations to get back on track is visible in the recent exchanges between the two countries. The proactive stance of Australian state governments and business organizations in promoting bilateral economic ties, and their calls for strengthened cooperation with China, contribute to this momentum.
However, uncertainties remain. With the impending visit of US President Joe Biden to Sydney for the Quad leaders’ summit on May 24, Australia’s close alliance with the US could influence its strategies. For Australia, it will be crucial to balance its strategic interests without undermining the hard-won recovery of China-Australia ties. Navigating this diplomatic tightrope will be a key factor in the trajectory of this revived relationship.