The Australia-China relationship has seen significant change in recent years. The political and economic relationship between the two countries has been strained over the last few years. However, the diplomatic freeze has been melting a bit, as evident with the Australian Foreign Minister’s visit to China recently from 20-21 December 2022, on the occasion of the 50th anniversary of diplomatic ties between the two countries. Australia recently underwent a change in leadership after the federal elections on 21 May 2022, with Anthony Albanese, the leader of the Labour Party, taking over as the Prime Minister of Australia; it will now be crucial to see how Australia-China relationship pans out under the new government.
On the foreign policy front, one of the most complicated issues for Canberra has been balancing its strategic partnership with the US and the economic relationship with China. The latest Defence Strategic Update 2020 for the first time highlighted that “strategic competition, primarily between the US and China, is playing out across the Indo-Pacific and increasingly in our immediate region, i.e. the Southwest Pacific, and it will be the principal driver of strategic dynamics in our region”.[1]
Coming to the Australia-China relationship, there has been a change in the way Australia views its relationship with China. Many ‘sore points’ emerged in Australia-China relationship in recent years, including the issue of 5G, Canberra’s concern of Chinese meddling in Australia’s domestic politics, Covid-19 and subsequent trade war between the two. The relationship has been largely tumultuous recently, particularly since the pandemic. The recent visit to Beijing, by the Australian Foreign Minister Penny Wong, therefore, after a long gap, is particularly significant as a sign of an effort towards easing tension/détente between the two countries.
Issue of 5G
The issue of 5G has been a nagging issue in the Australia-China relationship since Australia banned Chinese telecommunications giant Huawei and ZTE from any involvement in Australia’s planned 5G network in 2018. The Australian Government was one of the first governments globally to announce China’s exclusion from rolling out country’s 5G programme in August 2018. Former Prime Minister Malcolm Turnbull, under whose term the government took this decision, explained it on the grounds of “national security concerns” and need to “hedge against adverse contingencies in future”.[2] Talking about the firms that sell 5G equipment, he stated that “the company, the entity that provides and maintains it, that has constant access to it, has enormous capability, if it chose to do so, to act adversely to your interest”.[3] China had termed the Australian fear to be unfounded. The then Chinese Ambassador in Australia, Cheng Jingye, said that Australia’s ban on Huawei is “politically motivated” and “is a discrimination against Chinese company”.[4]
The issue remained a thorn as bilateral relations further deteriorated subsequently. In June 2022, speaking at the University of Technology, Sydney, China’s Ambassador to Australia Xiao Qian said that, Australia had fired the “first shot, which really damaged normal business relations”, in deteriorating ties with China, when it banned Chinese enterprises from the country’s 5G network programme.[5]
Pandemic and Economic Issues
During the Covid-19 pandemic, Australia and China were also involved in a ‘war of words’ on the issue of virus, as Australia called for an independent inquiry into the origin of the virus,[6] Beijing reacted strongly and called Australia’s actions ‘politically motivated’ and threatened to boycott Australian products. Tightening trade barriers, China announced a ban on select Australian imports. In total Beijing imposed more than $20 billion of trade strikes on Australia including on products like beef, wine, lobsters and barley.[7] China still remains Australia's largest two-way trading partner in goods and services, accounting for nearly one third (31 percent) of its total trade with the world. Hover, the two-way trade with China declined by 3 percent in 2020, totalling $245 billion (Australia’s global two-way trade declined 13 percent during this period). A series of trade restrictive measures by China have also impacted Australian goods exports to China, which were around 7 percent lower in the second half of 2020, compared to the second half of 2019.[8]
The relationship therefore, was severely damaged during the pandemic, with little hope for improvement in near future.
On the Pacific Islands
Another significant area of concern in bilateral ties has been recent Chinese push in Australia’s strategic neighbourhood. China’s expanding footprint in the South Pacific region has become especially concerning for Australia, which has long considered the region as its backyard. Australia tries to appear as a major player in its neighboring maritime area and mobilizes a large fleet to guarantee the security of the island continent.[9] Recently, when China signed a security deal with Solomon Islands in April 2022, the Australian government expressed concern about the nature and transparency of the deal and also about possible militarisation of the region in the light of the deal. Swift geopolitical changes in recent years and China’s assertive presence in the region, have meant that other actors, are resetting their priorities and stepping up engagement in the Pacific. Australia has already announced its enhanced role in the region with its Pacific "Step-Up" policy.
Politico-Diplomatic Relations
The relationship had been dented over the past few years due to many political and diplomatic issues. Earlier in 2017-18, there were wide-ranging concerns in Australia about foreign interference in domestic politics as Australia enacted laws targeting foreign interference in its domestic affairs and politics, implicitly targeted at Chinese meddling in Australia’s domestic politics. Although the Australian government denied that it was aimed at China but it did escalate the diplomatic tension between the two countries. The then Prime Minister Malcolm Turnbull had commented that "foreign powers are making unprecedented and increasingly sophisticated attempts to influence the political process, both here and abroad”.[10]
Australia had also raised concerns over China’s aggressive military display against Taiwan in 2021. The Australian government had raised the issue directly with China about its air force’s incursion into Taiwan’s air defence zone in 2021.[11]
However, after a long gap, in the last few months of the 2022, there have been interactions at the high-level between the two countries. The Australian Prime Minister Anthony Albanese and Chinese President Xi Jinping met on 15 November 2022, at the G20 Summit in Bali, Indonesia, the first such formal meeting between the leaders of the two countries in six years. Later, the visit of Australian Foreign Minister Penny Wong to Beijing in December 2022 was particularly significant, as this was the first visit by an Australian Foreign Minister to China in four years. During the visit, the sixth Australia-China Foreign and Strategic Dialogue was held in Beijing on 21 December 2022. Last such dialogue was held in 2018. At the dialogue, Australia’s Foreign Minister, Penny Wong and China’s State Councilor and Foreign Minister, Wang Yi “exchanged views on bilateral, regional and international issues of interest and reiterated the importance of a stable, constructive relationship in keeping with the Comprehensive Strategic Partnership” between the two countries.[12]
The Chinese Foreign Ministry’ press release after the dialogue recognising the recent deterioration of ties mentioned that “China-Australia relations have encountered difficulties and setbacks. The positive and constructive meeting between President Xi Jinping and Prime Minister Anthony Albanese, in Bali, in November 2022, has charted the course and provided strategic guidance for improving bilateral relations.” It also highlighted that the “50th anniversary of the establishment of diplomatic relations is an opportunity to renew commitment to the relationship, put it back on the right track”.[13]
Humanitarian Issues and Human Rights
Wong’s visit also raised hopes of possible freeing of two Australian citizens detained in China.[14] The Foreign Minister said that the Australian side raised the issue during discussion with the Chinese side and sought “consular access” to the two Australians. [15] The two cases are of the Australian journalist and former TV anchor Cheng Lei, arrested by Chinese officials in August 2020 on spying charges, and Dr Yang Jun, detained in 2019, also for espionage. On 19 January 2023, Foreign Minister Penny Wong put out a statement that “the Australian government is deeply troubled by the ongoing delays in his case. Australia will continue to advocate for Dr Yang’s interests and wellbeing at the highest levels and provide consular assistance to Dr Yang and his family”.[16] The Australian government has called this an ‘arbitrary detention’ and called for Dr Yang’s immediate release and his return to Australia.[17]
While in Beijing, at a press conference on 21 December 2022, Foreign Minister Wong said, “We have a principled view about the observance and respect for human rights, and that applies in terms of our views about Xinjiang or Tibet or Hong Kong.”[18] Few days later, she tweeted about her meeting with Uyghur-Australian community members, as she mentioned that the Australian government will speak out on issues that matter to Australians, including human rights in Xinjiang.[19]
Conclusion
Under the new Labour government, with the resumption of high-level interactions most significantly, the visit of the Australian Foreign Minister, signals a détente in the bilateral relationship. However, issues still remain on several fronts like concerns about China’s undue interference in Australia’s internal issues, and concerns about China’s increasing influence in the neighboring South Pacific region. There has also been a significant deterioration of public perception about China, among the Australians since the pandemic. Beijing on the other hand, has been wary of Australia’s deepening alliance with the United States, the Quad and the AUKUS, seeing these as containment tactics against China. Therefore, at this stage, it will be premature to predict what shape this current thaw in the ties is likely to take in the coming time.
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*Dr Pragya Pandey is a Research Fellow at the Indian Council of World Affairs
Disclaimer: Views expressed are personal
[1] Australian Government, Defence Strategic Update 2002, https://www.defence.gov.au/about/publications/2020-defence-strategic-update, Accessed on July 25, 2022.
[2] Former Australian PM Turnbull explains why his government banned Huawei, ZTE from selling 5G equipment, 28 March 2019, https://www.cnbc.com/2019/03/28/malcolm-turnbull-on-australias-decision-to-ban-chinas-huawei-and-zte.html
[3] Ibid.
[4] China accuses Australia of discriminating against Huawei, 17 February 2020, https://www.theguardian.com/australia-news/2020/feb/17/china-accuses-australia-of-discriminating-against-huawei
[5] China envoy says Australia fired first shot with Huawei ban, June 24, 2022, https://apnews.com/article/technology-china-sydney-australia-037521cd9d6e09854c98b4acf1acbf20
[6]Marise Payne , Twitter, https://twitter.com/dfat/status/1251757189154385920
[7] China’s ambassador to Australia is leaving his post, 28 October 2021, https://www.smh.com.au/politics/federal/china-s-ambassador-to-australia-is-leaving-his-post-20211028-p59407.html
[8] China country brief, Bilateral relations, https://www.dfat.gov.au/geo/china/china-country-brief#:~:text=Trade%20and%20investment,-China%20is%20Australia's&text=Two%2Dway%20trade%20with%20China,per%20cent%20compared%20to%202019. Accessed on July17, 2022.
[9]ARGOUNèS Fabrice, « L'Australie : la tentation de la puissance régionale », Pouvoirs, 2012/2 (n° 141), p. 103-116. DOI : 10.3917/pouv.141.0103, https://www.cairn.info/revue-pouvoirs-2012-2-page-103.htm, Accessed on July 19, 2022.
[10] Australia passes foreign interference laws amid China tension, 28 June 2018, https://www.bbc.com/news/world-australia-44624270
[11] China’s ambassador to Australia is leaving his post, 28 October 2021,https://www.smh.com.au/politics/federal/china-s-ambassador-to-australia-is-leaving-his-post-20211028-p59407.html
[12] Australia-China Foreign and Strategic Dialogue Joint Outcomes Statement, Joint statement, 21 December 2022, https://www.foreignminister.gov.au/minister/penny-wong/media-release/australia-china-foreign-and-strategic-dialogue-joint-outcomes-statement
[13] Wang Yi Holds China-Australia Foreign and Strategic Dialogue with Foreign Minister of Australia Penny Wong Wang Yi Holds China-Australia Foreign and Strategic Dialogue, 2022-12-21, https://www.fmprc.gov.cn/mfa_eng/wjdt_665385/wshd_665389/202212/t20221223_10994272.html
[14] Australia-China foreign ministers meet in bid to repair ties, December 21, 2022, https://apnews.com/article/g-20-summit-politics-business-covid-penny-wong-7af410518b7deea0b6c2504eb462150f
[15] Press conference, Beijing, China, Transcript, E&OE, 21 December 2023, https://www.foreignminister.gov.au/minister/penny-wong/transcript/press-conference-beijing-china
[16] Detention of Dr Yang Jun, Statement, 19 January 2023, Minster for Foreign Affairs, https://www.foreignminister.gov.au/minister/penny-wong/media-release/detention-dr-yang-jun
[17] ‘They treat me like dirt and tortured me’: Australian activist on three years in Chinese prisons, Monday, 17 January 2022, https://www.theguardian.com/world/2022/jan/18/they-treat-me-like-dirt-and-tortured-me-australian-activist-on-three-years-in-chinese-prisons
[18] Press conference, Beijing, China, 21 December 2022, https://www.foreignminister.gov.au/minister/penny-wong/transcript/press-conference-beijing-china
[19] Twitter, 19 January 2023, https://twitter.com/SenatorWong/status/1615987055166918656