Treasurer Jim Chalmers has embarked on a landmark visit to China, engaging with key Chinese officials in Beijing as part of a two-day trip to Australia’s largest trading partner.
This marks the first visit by an Australian treasurer to the economic powerhouse in seven years, signifying a pivotal step in the Albanese government's efforts to mend relations between Canberra and Beijing.
Chalmers' meetings will include discussions aimed at strengthening economic ties and enhancing trade opportunities for Australian businesses.
A significant aspect of the visit is the resumption of the Australia-China Strategic Economic Dialogue, which serves as a critical framework for collaboration following years of strained relations.
The dialogue reflects China’s increasing demand for Australia’s abundant resources, including coal, iron ore, and essential minerals vital for renewable technologies. These resources play a crucial role in China’s transition towards manufacturing solar panels, batteries, and electric vehicles.
In 2023, two-way trade between Australia and China reached a substantial $327 billion, underscoring the importance of this relationship. During his visit, Chalmers highlighted the changes in the global landscape since the last dialogue in 2017, noting, "The global economic environment has changed considerably in the face of dramatic environmental, technological, and geopolitical transformation. It is more important than ever that we continue cooperating and collaborating."
Despite the progress, challenges remain in fully restoring Australia-China relations. While recent efforts have led to the removal of tariffs on Australian wine, beef, and barley, import taxes on Australian lobster persist.
Additionally, there are concerns regarding Australia’s potential alignment with U.S. plans to impose bans on Chinese electric vehicles due to national security issues.