Chinese Premier Li's Australia visit aims to deepen ties, expand cooperation

Chinese Premier Li Qiang is set to visit Australia, aiming to reinforce the comprehensive strategic partnership between China and Australia and explore new avenues for cooperation, ensuring that both nations continue to benefit from their strong and complementary economic relationship.

Australia is the second leg of Li's three-nation tour from June 13 to 20. He started an official visit to New Zealand on Thursday and will also pay an official visit to Malaysia.

According to the Chinese Foreign Ministry, during Li's visit to Australia, he will co-chair the ninth China-Australia Annual Leaders' Meeting with Prime Minister Anthony Albanese, attend a China-Australia CEO Roundtable and engage with people from various sectors in Australia to exchange views on China-Australia relations and international and regional issues of mutual concern.

A milestone of China-Australia ties

Li's visit marks a significant milestone in the ongoing development of China-Australia relations, highlighting the deepening ties and high-level communications between the two nations.

In November 2022, Chinese President Xi Jinping met with Albanese on the sidelines of the G20 summit in Indonesia. A year later, Albanese officially visited China and attended the 6th China International Import Expo. During their meetings, the two leaders expressed their willingness to stabilize relations and acknowledged their economies were "highly complementary."

Economic and trade cooperation between China and Australia is a cornerstone of the bilateral ties. China has been Australia's largest trading partner, export market and import source for 15 consecutive years since 2009.

According to China's customs data released in January, China imported $155.38 billion worth of goods and services from Australia in 2023, an increase of 9.3 percent year on year. China exported $73.81 billion worth of goods and services to Australia in the same period.

The increase in trade was partly driven by the easing of supply constraints on goods and the recovery in overseas travel and passenger transport services. Many trade disputes between China and Australia have been resolved through consultations and negotiations.

In April 2024, Australia terminated its anti-dumping measures against Chinese wind towers after the World Trade Organization ruled that Australian duties on Chinese steel products were flawed. China has also lifted anti-dumping measures imposed in 2021 on Australian barley and wine and lifted bans on several Australian beef and lamb exporters.

Highly complementary economies

The Australian government announced on Wednesday that the country exported 86 million Australian dollars worth of wine to China in one month after China lifted tariffs. China, once the largest export market for Australian wine, implemented zero tariffs on Australian wine after the two countries signed a free trade agreement in 2015 and soon became the largest export market for Australian wine.

Rob Donelly, General Manager for Greater China of the Australian Trade and Investment Commission, said that the return of Australian wine to the Chinese market will benefit both Australian wine producers and Chinese consumers. According to him, Australia will step up the promotion of its wine in the Chinese market this year. For example, its wine regulator plans to hold roadshows for Australian wine brands in four Chinese cities at the end of August.

The economic structures of China and Australia are highly complementary. Australian milk, beef and wine are popular in China, and its coal, iron ore, barley, hay and other products are also in demand in Chinese markets. According to a trade guide published by the Chinese Commerce Ministry, there is huge potential for trade cooperation in minerals and new energy vehicles (NEVs).

Additionally, China has been one of the most important service trade partners for Australia. In the 2022-23 fiscal year, Australia's total service exports to China exceeded 10.9 billion Australian dollars, accounting for 11.4 percent of Australia's total service trade exports. The country received over 550,000 Chinese tourists in 2023.

China and Australia have broad prospects for cooperation in both traditional and emerging fields, Chinese Ambassador to Australia Xiao Qian said at the recent China-Australia Economic Cooperation Forum. He called on the two sides to maintain stability in diplomatic ties, strengthen practical cooperation in traditional fields, and expand cooperation in emerging fields such as climate change, electric vehicles, artificial intelligence and the green economy.

(Cover: An aerial view of Canberra, capital of Australia. /CFP)