Possible Thaw in Strained Relations Between Australia and China

Chinese Foreign Minister Wang Yi speaking in Beijing in 2015 following a meeting with U.S. Secretary of State John Kerry.

Chinese Foreign Minister Wang Yi speaking in Beijing in 2015 following a meeting with U.S. Secretary of State John Kerry.

Australian Foreign Minister Marise Payne welcomed Chinese investment in Australia after a meeting with her Chinese counterpart, Wang Yi, in Beijing on November 8. This came one day after the Australian government rejected a Chinese bid to take over an energy company, but Payne emphasized that this does not indicate a change in Australia’s openness towards business cooperation with China.

The meeting between Wang and Payne was the first time an Australian foreign minister has visited Beijing in more than two years, the last being former-Foreign Minister Julie Bishop’s trip in February 2016. Payne’s visit coincided with the first China International Import Expo held in Shanghai, where Australian companies made a big showing. That event showcased China as a consumption powerhouse amid its trade war with the United States.

According to the Chinese state-run Xinhua News Agency, both officials vowed to “promote bilateral ties on the basis of mutual trust and win-win results.” Wang said that China appreciates Australia for “its support for and active engagement” in the import expo, stressing the importance of re-establishing mutual trust between the countries. Payne also acknowledged that Australia “does not regard China as a military threat.”

The meeting came at a pivotal time as, in recent months, relations between China and Australia have been strained, despite China being Australia’s largest trading partner. Australia barred China’s leading telecommunication companies, ZTE and Huawei, from its 5G networks in August and passed foreign interference laws in June following allegations of Chinese government influence at Australian universities and in the Chinese-Australian community.

During the private meeting, Payne also raised issue of China’s widely-criticized interment of Uighur minorities in the northwestern Xinjiang Autonomous Region. It is important to note that it is rare for foreign officials to express concern over China’s human rights policies in public. Wang himself asked the reporters to consider the issue “from the perspective of combating terrorism.”

While Payne was in Beijing, Australian Prime Minister Scott Morrison announced that Australia will offer up to $1.45 billion in grants and loans to infrastructure projects in the southwest Pacific region intended to “strengthen ties” with the Pacific island nations. According to BBC, this move is seen as “an apparent attempt to counter China's influence.” Morrison himself is likely to visit China “before the end of the year,” according to the Australian.