Xi and Albanese Meeting Signals Thaw in Frosty Australia-China Relations

In the ensuing bilateral talks, pressing concerns loom large: Australia alleges that China is engaged in espionage, while Beijing is scrutinizing the AUKUS and Quad security blocs in the Asia-Pacific.

In recent times, strained relations between Australia and China have taken a toll, with Beijing's extensive trade restrictions causing severe damage to Australia's viticulture sector, affecting the economic well-being of agricultural and fishing communities, and influencing trade worth multiple billions of dollars.

Prime Minister Anthony Albanese is in Beijing on a momentous trip, marking the first time an Australian head of government has visited in seven years and aligning with the half-century commemoration of diplomatic engagement between the two nations. His itinerary, starting Saturday, encompasses pivotal meetings with Chinese dignitaries, including President Xi Jinping and Premier Li Qiang.

Thawing Tensions

The recent improvement in diplomatic relations between the two countries follows a period of escalating tensions that began in 2020, with Beijing imposing trade sanctions on Australian exports, a move viewed as retaliation for Australia's push for a COVID-19 origin inquiry in China, against a backdrop of already souring relations.

Media sources say that China's Foreign Ministry attributed the 2020 trade disputes to Australia's alleged breach of international relations norms, while its Commerce Ministry justified the restrictions on anti-dumping grounds. Both nations, recognizing potential benefits, have made efforts in recent months to ease economic tensions, setting the stage for diplomatic engagement.

Managing Sino-Australian relations is crucial for stability in the Asia-Pacific, with regional leaders from Washington to Seoul monitoring the situation closely.

This visit is viewed as a significant step in advancing these relations, a sentiment news sources attributed to Jingdong Yuan, an Asia-Pacific security expert at the University of Sydney.

“This visit is very symbolic but still very important. They have come this far from the bottom just 18 months ago – this is a good beginning (for them) to explore where they can cooperate…The fact that it is the first visit in seven years to our major trading partner is a very positive step,” he said.

Anticipated Discussions

Several contentious issues could overshadow the upcoming talks. News sources point to the opinion of analysts that the meetings have the potential to foster better communication channels. However, they are unlikely to reverse the current delicate state of affairs.

In remarks to the media, Elena Collinson, a research analyst at the University of Technology Sydney's Australia-China Relations Institute, indicated that the visit from the head of government might be perceived by Beijing as an avenue to bolster its involvement in sectors of renewable energy industries and natural resources. Further, she noted China's anticipation of support from Albanese regarding its ambition to become part of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

“As tensions simmer with the US and its own economic position teeters on the precarious, it is in (China’s) interests to inject some stability into its relations with a resource-rich US ally,” Collinson stated.

Navigating Geopolitical Currents

Prime Minister Albanese’s Beijing visit follows his meeting with President Biden in Washington, where they discussed concerns over alleged China's territorial claims in the South China Sea and lauded the AUKUS partnership and the Quad alliance. While celebrating these alliances, which assist Australia in acquiring nuclear submarines and bolster regional cooperation, Albanese also faces the delicate task of repairing ties with China amid the wariness of these groups' objectives.

Chinese President Xi Jinping is slated this month to join the Asia-Pacific Economic Cooperation (APEC) summit in San Francisco and is anticipated to meet President Biden amid efforts to mend strained China-US relations. Concurrently, China's reconciliatory moves with Australia may foster a conducive environment for the upcoming significant discussions, with Chinese leadership possibly reflecting on the results of its prior economic strategies against Australia.