Australian Trade Minister Visits China After 4 Years to Discuss Trade Normalization

Don Farrell, Australia's Minister for Trade, visited Beijing, China, on the 11th. This visit by Minister Farrell is expected to open the door to normalizing relations between China and Australia, which have experienced trade conflicts over the past several years.

According to local media, Minister Farrell arrived in Beijing for a 3-day, 2-night trip starting on the 11th, where he is scheduled to hold talks with Wang Wentao, China's Minister of Commerce, to discuss lifting trade restrictions between the two countries. This is the first visit by an Australian trade minister to China in four years since 2019.

At Beijing Capital International Airport, Minister Farrell told reporters, "I will discuss with Minister Wang the full normalization of Australia's exports to China," adding, "Both sides have confirmed goodwill, but there is still more work to be done." He further stated, "Nothing can play a bigger role than a strong China-Australia trade relationship in securing regional peace."

Earlier, Wang Wenbin, spokesperson for the Chinese Ministry of Foreign Affairs, said at a regular briefing, "The economic structures of the two countries are highly complementary, and bilateral economic and trade cooperation is mutually beneficial and win-win." He added, "Improving, maintaining, and developing bilateral relations aligns with the fundamental interests of both countries and their peoples." He continued, "China hopes to work with Australia to properly implement agreements reached between the two leaders, enhance mutual trust, deepen cooperation, and appropriately handle differences to promote the continued healthy and stable development of China-Australia relations." He emphasized, "Both sides can resolve their respective economic and trade concerns in a balanced manner through constructive negotiations."

China is Australia's largest trading partner. The trade volume between the two countries reached $195 billion (approximately 259 trillion KRW) last year. In particular, about 65% of Australia's iron ore exports are destined for China.

Although the two countries have maintained a close relationship through trade, relations deteriorated in 2020 following the outbreak of the COVID-19 pandemic, triggered by then-Prime Minister Scott Morrison's public call to investigate the origins of COVID-19. China unofficially banned imports of various Australian products, including coal, beef, wine, and barley.

However, since the Albanese government took office in May last year, efforts have been made to improve relations with China. Although political tensions remain due to Australia's participation in the AUKUS security alliance (Australia, the United Kingdom, and the United States) and the plan to acquire nuclear-powered submarines from the U.S., both countries are positive about normalizing relations in the economic sphere.