Australian and Chinese trade ministers meet for first time in three years

The Australian trade minister is meeting with his Chinese counterpart for the first time in three years as Canberra continues to urge Beijing to remove tariffs and bans on key export sectors.

Don Farrell, who was in Canberra for the resumption of parliament, is meeting virtually with the Chinese commerce minister, Wang Wentao, on Monday.

The Australians were expected to use Monday’s meeting to push for the resumption of unimpeded trade. Canberra doesn’t believe the differences can be solved overnight, but sees the meeting as a step towards the goal.

At the height of diplomatic tensions between China and Australia in 2020, Beijing blocked phone calls and meetings between Australian government ministers and their direct counterparts as a result of the then-Morrison government’s early push for a Covid origins inquiry.

The Morrison government accused Beijing of engaging in “economic coercion” by rolling out tariffs or unofficial bans on a range of Australian exports, including wine, barley, red meat, lobsters and coal.

Former Coalition trade ministers Simon Birmingham and Dan Tehan were rebuffed in their attempts to hold direct talks with China’s commerce minister.

Chinese officials had argued the Australian government must first take steps “to arrest the decline of the bilateral relationship” and create a better mood for talks.

Farrell, however, received a congratulatory letter from Wang shortly after being appointed as trade minister last year and responded to that correspondence.

Farrell has continued to push Australia’s largest trading partner to remove the trade “blockages”, arguing it would be in both countries’ interests to do so.

China has previously accused Australia of taking a hostile approach to Chinese investment in the country, including through the ban on Chinese telco Huawei in the 5G network.

The Albanese government maintains that it has not given ground on Australia’s national interests or policy positions, but it has pursued a deliberate effort to engage in dialogue with China to try to get the relationship on a better footing.

The government acknowledges stark differences will endure between the two countries, but believes these differences should be managed “wisely”.

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China’s vice-minister of commerce, Wang Shouwen, and Australia’s assistant trade minister, Tim Ayres, in Davos last month.
China’s vice-minister of commerce, Wang Shouwen, and Australia’s assistant trade minister, Tim Ayres, in Davos last month. Photograph: Australian Government

China’s ambassador to Australia, Xiao Qian, revealed last month that Chinese and Australian negotiators at the World Trade Organization in Geneva were engaged in talks in an effort to resolve their trade disputes.

After reports China was considering lifting its restrictions on coal imports from Australia from April, Xiao also expressed hope for an overall improvement in the trading relationship in 2023.

Both sides laid the groundwork for Monday’s meeting by holding talks between Australia’s assistant trade minister, Tim Ayres, and China’s vice-minister of commerce, Wang Shouwen, in Davos last month.

Australia is seeking rulings at the WTO against China’s tariffs on Australian wine and barley and, to date, it has signalled it is not ready to suspend or withdraw those applications.

Earlier on Monday, the Australian foreign affairs minister, Penny Wong, called on the US and China to remain in dialogue despite the flare up in tensions after the US shot down what it labelled a Chinese spy balloon that flew over American territory.

source: theguardian.com