After years of rising anger and military threats, China’s trade war with Australia may soon come to an end as diplomatic relations between the two countries finally thaw.
Xiao Qian, China’s new ambassador to Australia, said the two countries should be “friends” and opened the door to negotiations that could end the two-year deadlock.
He outlined the steps necessary to relieve $20 billion in penalties, claiming that the new Australian government must provide a “decent” political solution.
Western Australia, the ambassador argued, should serve as a diplomatic model for the rest of the country, as it continues to enjoy a resources boom exporting to China.
He said China and WA Premier Mark McGowan had “differing perspectives on certain issues,” but they had discovered “common ground and consensus” for “mutually beneficial cooperation.”
A good political relation is helpful for trade relations and a bad political relation [is] also affecting our cooperation in other areas as well,’ he told The West Australian.
‘If we have an improved relationship politically, it will create an atmosphere to relax some of the Chinese businessmen so [they] can think about coming back, think about resuming their business and trade relations with Australia.’
Defence minister Richard Marles ended a near-three year diplomatic stalemate and met his Chinese counterpart General Wei Fenghe this weekend.
The pair talked for an hour in Singapore on Sunday morning and had ‘full and frank’ discussions, said Mr Marles, who called it ‘very significant’ and a ‘critical first step.’
‘It’s three years since defence ministers of our country have met,’ he said. ‘Australia and China’s relationship is complex – it is really important that we are engaging in dialogue right now.’
The meeting was hailed by former ASIO boss Dennis Richardson who said it was created by the change in government – but just the first step in a long process.
‘New governments don’t bring the barnacles, the bruises and the baggage which you accumulate when you’ve been in office for a decade,’ he told ABC Radio.
‘A change of government after a decade does bring with it opportunities of this kind.’
But he warned: ‘I don’t think they’ll be looking for any startling breakthrough anytime [soon].’
After Australia ordered an investigation into China’s role in the origins of the Covid epidemic, President Xi Jinping slapped trade restrictions on Australian exports in 2020.
He also listed 14 issues with Australia, including restrictions on Chinese investment and Australia’s role in “leading the crusade against China.”
Since then, relations between the Chinese and Australian militaries have deteriorated, with blinding lasers fired at Australian surveillance planes and chaff dangerously discharged near the engines of another Australian plane.
China has also been striving to broaden its sphere of influence in the Pacific, signing a security treaty with the Solomon Islands and courting other island nations.
Beijing and Canberra, on the other hand, regard the change in Australia’s administration as an opportunity to repair the relationship.
Don Farrell, Canada’s Trade Minister, has indicated that he will meet with Chinese Commerce Minister Wang Wentao to discuss the ban.
And, following his election victory last month, Chinese Premier Li Keqiang has already extended a note of congratulations to incoming Prime Minister Anthony Albanese.
Ambassador Xiao described it as “clear evidence” that “a strong and stable relationship between Australia and China is in our two countries’ best interests.”
The diplomat stated, ‘The message is plain.’ ‘It’s a friendly gesture. The Australian side is expected to respond positively, and we are still in the process.
‘There are good reasons for us to be partners and friends. There is no need for us to regard each other as “hostilities,” “threats,” or “enemies.”
‘Overall, there are reasons to believe that China and Australia have more in common than differences.’
However, he cautioned that all encounters must be productive, and that if they wind up quarrelling, relations would deteriorate even worse.
He cited the former Coalition government’s decision to prohibit Huawei from tendering for the installation of Australia’s 5G network as a watershed moment in the country’s deteriorating ties.
‘Many Chinese businessmen were astonished, worried, and dissatisfied,’ he said.
‘They were also a little frightened.’ Huawei was the victim of this today. What about the following day? Is this something that will happen to me? Is this something that will happen to my company?’
Another major concern for China is the AUKUS military deal, which allows Australia access to US and UK nuclear submarine technology, which China regards as a serious danger.
‘AUKUS, in our opinion, is aimed at China,’ the ambassador stated. ‘Attempting to sabotage China’s and the relevant nations’ existing normal ties and cooperation.
‘It’s not a good idea,’ says the narrator.
He also defended recent military clashes between the Australian and Chinese militaries, saying the two countries needed to find a solution to avoid similar incidents.
A Chinese naval ship fired a military-grade laser at an Australian P-8 Poseidon surveillance aircraft in the Arafura Sea off Australia’s north coast in February, in what the Coalition government called a hostile conduct.
Another P-8 was conducting a surveillance patrol over international waters near Taiwan in the South China Sea last month when it was intercepted by a Chinese J-16 fighter jet.
The J-16 first accompanied the P-8 and shot flares, according to Defence Minister Marles.
It then accelerated, cut across in front of the P-8, and discharged a “bunch of chaff containing small particles of aluminum, some of which were absorbed into the P-8 aircraft’s engine.”
However, the envoy argued that the situation may have been perceived as a threat to China.
‘A scenario may be that the Australian plane was close to or above Chinese territory, and the Chinese side was feeling threatened or in danger,’ he said.
‘As a result, they must take action to warn the other side not to approach too closely.’ The warning was repeated multiple times, but to no avail. That’s exactly what occurred.
‘I believe the most important thing is for us to recognize the need of being cautious in such a situation and taking steps to avoid it in the future.’
Despite persistent penalties on Australian products such as coal, barley, crayfish, and wine, iron ore exports to China have been rising.
Ambassador Xiao lauded Mr. McGowan for his business contacts with China, which resulted in billion-dollar profits for the state.
He also promised that China will continue to buy up the state’s mineral resources, and that the country would even explore adopting more environmentally friendly technology.
In 2019, China produced more carbon dioxide than the next four countries combined, and some of its enterprises pollute the environment more than entire countries like Pakistan.
‘Iron ore of high grade is critical to China’s industrial development and steel sector,’ he said. ‘We’re going to keep this relationship going.’ It’s a win-win situation.
‘There are new sectors I believe both sides should consider tapping into, in addition to the existing co-operation in the trading of iron ore and other mining goods.’
‘Take, for example, more green energy to combat climate change.’
He further claimed that Landbridge’s 99-year lease on Darwin Port will help Australia and establish a critical northern economic link between the two countries.
The new Labor government is reviewing the 2015 agreement, but the ambassador is optimistic that it will be preserved.
‘I’m hoping for a positive review as well as a positive outcome,’ he continued.