On 4 November 2023 Anthony Albanese became the first Australian Prime Minister in almost 7 years to set foot in China. This was a significant moment in the history of bilateral relations between Australia – China and marked the 50th anniversary of the first visit to China by an Australian Prime Minister, Gough Whitlam in 1973.
King & Wood Mallesons International Director and National President of the Australia China Business Council, David Olsson, was on the ground in China to witness, welcome and participate in the events that signalled to business – and the world – the rebuilding of confidence in the bilateral relationship.
David reflects on his experience, observations and expectations on what is ahead for Australia – China relations.
Can you give us some insight into how important this visit was by Australian Prime Minister Anthony Albanese to China?
Seven years is a long time between visits for any diplomatic relations, let alone between two countries that are so deeply economically interdependent.
This 4-day visit by Prime Minister Albanese was a very positive development and sets the scene for a new chapter in the bilateral relationship between Australia and China.
After 18 months of careful diplomacy, each country has now recommitted to work towards a productive relationship. Of course, there is still a lot to do to rebuild trust, but the Prime Minister’s proactive approach in fostering constructive dialogue and cooperation, and President Xi’s willingness to normalise relations, reflects a shared commitment to the maintenance of a stable, constructive bilateral relationship.
The meeting also provided a much-needed boost to the confidence of Australian exporters of goods and services who have been impacted by the pandemic, global trade flow disruptions, and geo-political tensions.
This confidence is important because Australia is a trading nation, and China is by far our most important trading partner. For the last 50 years, two-way trade with China has been the anchor that has provided stability and allowed us to navigate through uncertain events and obstacles. The last few years have been difficult for many sectors and the good news is that it now seems likely the remaining trade barriers will be removed within the next few months.
What was the sentiment like on the ground at the official events?
Apart from the political meetings in Beijing which were well received, the Prime Minister also addressed over 400 Australian and Chinese business leaders at a reception in Shanghai at the China International Import Expo (CIIE), which is China’s most important import trade fair.
The atmosphere was one of enthusiasm and optimism. His remarks on future engagement and cooperation were very well received by everyone in the room. Shoulders looked lighter and eyes lit up as he spoke about the importance of personal connections, tourism, trade, and investment between our two countries.
To have the Prime Minister, and also Tourism and Trade Minister Don Farrell, participate in CIIE highlighted not only the importance of Australia’s economic relationship with China but was also a highly visible promotion of Australia’s finest exports, in a highly competitive market.
In fact, the representation of Australian companies and brands this year was the highest on record – over 250 companies and thousands of brands from around Australia – all showcasing their world-class products and services to the 400,000+ registered attendees. This was in addition to the hundreds of thousands who tuned into the expo live streaming launches. These numbers are staggering and highlight the opportunity in the China market. There was a real elevated sense of energy and excitement for businesses and consumers on both sides.
It would have been difficult for anyone to have lefts these events without feeling that the horizon is looking much brighter for our bilateral relations.
What can we expect next?
Re-establishing bilateral relations is not something that will happen overnight, it’s a step-by-step process that will take time, patience and commitment from both sides. Prime Minister Albanese’s visit was an important first step in establishing leader-level personal relations, which can then flow into a regular program of formal and informal dialogues, cascading down all levels of government and involving business, industry and civil society.
The Statement on Joint Outcomes released on the final day of talks shows signs of a more stable bilateral relationship, including agreeing to:
- resume the Annual Leaders Meeting – which has not taken place since 2019
- resume the Strategic Economic Dialogue
- create a simpler visa process for two-way visits.
Things won’t change overnight – we need to be realistic and temper expectations. The pathway to stable bilateral relations is one that may take many twists and turns but one thing will remain: the mutual benefit. Stable bilateral relations has always benefited both countries.
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