17.02.2023
Chinese and Australian officials will meet in the near future to discuss issues such as easing trade restrictions. Earlier, Chinese Commerce Minister Wang Wentao had already signaled his willingness to improve bilateral relations.
(Voice of Deutsche Welle Chinese Network) Australian Trade Minister Farrell (Don Farrell) said in an interview with Bloomberg: “Although the Chinese Minister of Commerce has previously told me that the frozen period of China-Australia relations has ended, and now it is moving towards the warm spring. season. However, China-Australia tensions did not develop overnight, and certainly will not disappear completely overnight.”
On February 6 this year, Wang Wentao, Minister of Commerce and Trade of China and Australia, held a video meeting with Farrell. This is also the first ministerial meeting between China and Australia since 2019. Farrell said he hopes the two sides can make breakthroughs in terms of exports of timber, wine and dairy products to China. He said such a breakthrough would be critical to the Australian economy as China was Australia’s largest trading partner. For the Labor government, which has been in power for eight months, such a breakthrough is also crucial. Unlike its predecessor, the center-right government, the Labor government does not advocate the implementation of a tough China policy.
Farrell said that the upcoming talks between representatives of the Australian and Chinese governments will mainly focus on how to restore and promote bilateral economic exchanges. It is generally believed that Farrell will travel to Beijing next month for a direct meeting with Chinese Commerce Minister Wang Wentao.
In 2020, after the then Australian Prime Minister Morrison issued a call for an international traceability investigation of the new crown virus, China immediately implemented unofficial restrictions on the use of Australian coal. Later, such commercial punishment measures were extended to Australia’s bulk exports to China, such as wine, barley, and lobster.
Nonetheless, Australia’s exports to China have been on the rise, thanks to rising iron ore prices. Farrell said that when he held a video meeting with Chinese Minister of Commerce Wang Wentao on February 6, he was told that in addition to the restart of Australian coal exports to China, China will also resume buying Australian timber.
Coal is an important export product of Australia to China. Pictured is an open pit coal mine near Camberville, Australia.
Farrell said he was also told that Bulla, an Australian dairy company, had received another order from China after many years. Farrell hopes that the high tariffs on Australian wine will also be reduced. Farrell said Chinese Commerce Minister Wang Wentao had hinted to him that red wine from southern Australia was his favorite. “Signs of improvement are everywhere,” Farrell said.
Australia wants to sign FTAs with India, EU
Despite the improving momentum in Australia-China trade, Farrell still plans to visit India with Australian Prime Minister Albanese in March this year. Farrell said. Farrell said he would hold talks with India on a wide-ranging free trade agreement. In April last year, the previous Australian government reached a provisional free trade agreement with India, and the two sides will continue to negotiate on this basis. Farrell said a free trade agreement would still take time, given that the two sides remained at odds over opening India’s agricultural market to Australia and Australia’s job market to Indian workers. However, when talking about the free trade agreement with the EU, Farrell said that both Australia and the EU are confident in signing a free trade agreement within this year.
(Bloomberg, AFP)
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