PM to walk diplomatic tightrope in crucial China visit
Collaborating on new technologies and building inter-personal ties will be the focus of Anthony Albanese's second trip to the Asian powerhouse as prime minister.
The visit will centre on the annual Australia-China leaders' meeting with Premier Li Qiang, while he will also have a one-on-one with President Xi Jinping - the pair's fourth formal meeting.
Mr Albanese flies out of Sydney to the financial hub of Shanghai on Saturday morning, before visits to the capital Beijing and Chengdu in the southwestern province of Sichuan, known as the home of giant pandas.
After relations between China and Australia soured during the COVID-19 pandemic, Labor's election in 2022 precipitated a normalisation in trade and dialogue, with a return to regular high-level meetings.
But tensions remain fraught.
China's military assertiveness in the region is an increasing concern for Canberra.
A People's Liberation Army navy vessel ruffled feathers among Australian security circles in February, when it circumnavigated the continent and conducted live fire drills, causing commercial flights to be diverted.
The plight of jailed Chinese-Australian writer Yang Hengjun, who is serving a suspended death sentence in China over espionage charges, is also straining the relationship.
Meanwhile, Beijing has taken issue with Australia's commitment to end Chinese-owned company Landbridge's 99-year lease of Darwin Port early on security grounds.
Mr Albanese said he would raise the full range of issues with his Chinese counterparts.
"We co-operate where we can, we disagree where we must and we're able to have those honest conversations about some of the disagreements that are there," he told reporters in Sydney on Friday.
But the main focus of the trip will be growing business links.
China is far and away Australia's biggest trading partner.
Two-way trade between the nations in 2024 was valued at $312 billion, more than the nation's three next-biggest partnerships combined.
The prime minister will be accompanied by a high-powered delegation of business leaders, including from mining giants Rio Tinto, BHP and Fortescue, steelmaker BlueScope, universities Monash and UNSW, and Macquarie Bank.
Mr Albanese's first term focused on removing trade restrictions on several of Australia's traditional key exports to China - including beef, wine and barley.
This trip will look to build on those areas while developing new economic opportunities.
The prime minister was coy on whether he backed Chinese ambassador Xiao Qian's calls for an expanded free-trade agreement encompassing artificial intelligence, healthcare and clean energy.
"We'll engage constructively across the range of issues and the range of potentials that's there," Mr Albanese said.
"But certainly, in the areas such as green energy, for example, there is a real prospect of further engagement."
Green steel, in particular, will be the topic of much discussion.
"Chinese policymakers and steelmakers are serious about decarbonising the steel sector, because they have to be," said Australia China Business Council president David Olsson.
"For Australia, this presents a generational opportunity. We're one of the world's largest iron ore suppliers, and we have the renewable energy, industrial capability and investment capital to move further down the value chain."
Rio Tinto's Australian chief executive Kellie Parker said it was a valuable opportunity to deepen collaboration between suppliers and steelmakers in developing the technology.
Mr Albanese will also aim to highlight the people-to-people links between the two nations.
On Sunday, he will meet with former Socceroo Kevin Muscat, who now coaches Chinese Super League club Shanghai Port FC, and will visit the headquarters of online travel agency Trip.com to help promote Chinese tourism to Australia.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
ABC News
22 minutes ago
- ABC News
Another economist warns about intergenerational wealth in Australia
Why are more economists talking about Australia's intergenerational wealth challenges? Guy Debelle, a former Reserve Bank deputy governor, joined the fray last week. In a speech in Sydney, he said one of Australia's big challenges, in the next decade or two, will be managing the huge transfer of wealth that will have to occur from older generations to younger. "Superannuation and housing are possibly the ultimate embodiment of intergenerational issues in this country," he said, as reported by the Australian Financial Review. Dr Debelle was talking about an issue the Productivity Commission raised in 2021. In its 2021 report, "Wealth transfers and their economic effects," the commission said Australian had experienced strong growth in household wealth over the last 20 years, but it had been very uneven. "The wealth of the average older Australian has grown remarkably since the turn of the century," it said. "Retirees in particular have seen disproportionately strong growth in their wealth relative to younger people. "Indeed, at a time where one would expect retirees to be drawing down on their wealth to fund consumption, their wealth has actually increased." The commission said housing wealth was driving the phenomenon, along with growth in superannuation balances. "Older age groups own more housing wealth, they draw down on that housing wealth slowly, and they inherit large housing wealth from their partners in old age," it said. The below graphic, from the commission's report, showed what happened to real house prices in Australia between 1970 and 2018, relative to incomes. The report said while trillions of dollars in wealth would transfer from older Australians to younger Australians in coming decades, the timing of the wealth transfer could create its own challenges. "By the time people receive an inheritance, they will be well into middle age — about 50 years old on average — already established in their careers and housing, and many will potentially be nearing retirement themselves," it said. It kickstarted a national conversation about the need for wealth transfers to take place sooner, about the social benefits of older Australians downsizing their homes in retirement, and about the tax system generally. But that was four years ago, and house prices have soared (again) in the meantime. So in July last year, JBWere updated the numbers in that 2021 commission report to account for the growth in asset values that has occurred since. The commission report had referenced research from 2017, estimating that older Australians would transfer $3.5 trillion to younger generations over the next 20 years. But according to JBWere, that figure now stands at $5.4 trillion over the next 20 years. Its report revived questions about Australians receiving large inheritances so late in life, and how our tax system and housing situation were contributing to the phenomenon. It said the value of inheritances, and the age of receipt of inheritances, both peaked about 60 years of age. "This increased age of receiving an inheritance can be traced back to the rise in the average age of having children and increased life expectancy," the JBWere report said. "It does, however, raise the question of the need of recipients at this stage of life, compared to either earlier years (Bank of Mum and Dad) or for some bequests being directed elsewhere where greater need exists." At the beginning of last year, the former Treasury secretary Ken Henry had also warned that our tax system had deteriorated to the point that he was worried about Australia's "social compact" holding together. He said housing, the state of climate policy, and the commonwealth's over-reliance on taxing workers' incomes were three areas of major policy failure. "It's an intergenerational tragedy that we have allowed this to happen," he lamented. And last week, Dr Debelle also linked Australia's housing and tax situation to global economic trends. He said the political problems we're seeing in so many countries, and the "quackery" that's underpinning some current economic policies (such as Donald Trump's tariff policies) were symptoms of a larger problem. "One of the root causes of where we are today — particularly in the US, but it's also true in many other countries — has been the failure to distribute the gains from economic policy changes," he warned. Then on Friday, Cotality released its latest "Housing Chart Pack" data. It showed property values in nearly half of Australia's suburbs were sitting at record highs at the end of June. In Brisbane, almost 80 per cent of its suburbs had record-high property prices. In Perth it was a similar story. CBA's economics team said the upward momentum in property prices since mid-February had been fuelled by the Reserve Bank's interest rate cuts this year. The latest Westpac-Melbourne Institute consumer sentiment survey also showed that house price expectations jumped by 7 per cent in June, to its highest level since 2013. It showed over three quarters of consumers now expect property prices to rise over the next 12 months, especially in Queensland and NSW. But it said those expectations for property price increases weren't exactly filling Australians with confidence. "Despite this positive outlook for house prices, consumers remain relatively averse to real estate as an investment option and to risk in general," Westpac's Matthew Hassan said. "Indeed, responses to our quarterly question on the 'wisest place for savings' suggest that the tariff-related turmoil this year has seen what was already a high level of risk aversion intensify even further. "Consumers still heavily favour 'safe options' with 55 per cent nominating either 'bank deposits' or 'pay down debt' as the wisest place of savings, up slightly from 52 per cent in March. "Interest rate cuts have done little to shift these views so far," he said. It's a familiar dynamic. The majority of people expect property values to keep rising, and those price increases will keep boosting Australia's household "wealth". But will it be good for the Australia's younger generations? What's the end-point in all of this?
ABC News
25 minutes ago
- ABC News
Albanese bats away questions about Taiwan and US defence demands on first day of China visit
The prime minister has been forced to bat away fresh defence demands from the Trump administration on the first full day of his visit to China, insisting that Australia supports "the status quo" in regards to Taiwan. The Financial Times reported on Saturday that senior defence official Elbridge Colby — who is leading the Trump administration's review of the AUKUS pact — was pressing both Australia and Japan to say what role they would play if the US and China went to war with Taiwan. Mr Elbridge took to social media after the piece was published to say that Mr Trump was focused on restoring US strength, including "by urging allies to step up their defense spending and other efforts related to our collective defense". "Of course, some among our allies might not welcome frank conversations. But many, now led by NATO after the historic Hague Summit, are seeing the urgent need to step up and are doing so," he said. The story came at an awkward moment for Anthony Albanese who fielded several questions on Mr Colby's comments during his visit to the commercial metropolis of Shanghai. Mr Albanese told reporters Australia did not support "any unilateral action" on Taiwan and that its spending on both defence and aid was "about advancing peace and security in our region". "We have a clear position and we have been consistent about that … We don't want any change in the status quo." A separate US government source told the ABC that the US — which maintains its own policy of strategic ambiguity when it comes to the defence of Taiwan — was having a "broader conversation" with allies like Australia. They also said Australia had rejected overtures from US officials who suggested Australia should give specific assurances to the Trump administration about how they'd deploy Virginia class submarines acquired through the AUKUS pact in the event of the US going to war. Asked whether the US was entitled to seek assurance about an Australian response to a war over Taiwan given its own position of strategic ambiguity, Mr Albanese did not answer directly but said the question answered itself. Earlier, acting Defence Minister Pat Conroy told the ABC's Insiders on Sunday Australia did not "engage in hypotheticals" and would make its own decisions in response to any conflict. "The sole power to commit Australia to war, or to allow our territory to be used for a conflict, is the elected government of the day," he said. "Sovereignty will always be prioritised and that will continue to be our position." Mr Albanese has tried to use the first leg of his visit to highlight the human links between Australia and China, going for a walk down Shanghai's famous waterfront with ex Socceroo Kevin Muscat, who is the manager for high-profile local soccer club Shanghai Port FC. After that he launched a new "chapter" of a major Australian tourism campaign designed to coax more Chinese visitors back to Australia, who have returned to Australia more slowly than expected in the wake of COVID-19 travel bans. He also met Shanghai Party Chairman Chen Jining, where he praised China's rapid economic development. "The development we can see across the river is symbolic of the extraordinary development that China has seen in recent decades, lifting literally hundreds of millions out of poverty," he said. Mr Albanese told the chair that Australia wanted to engage in "frank and constructive dialogue" to promote "stability" in the region. "We deal with each other in a calm and consistent manner and we want to continue to pursue our national interests," he said. "And it's in our interests to have good relations with China."
Perth Now
32 minutes ago
- Perth Now
US bombshell hits PM's China trip
One of Donald Trump's key defence advisers and the man in charge of the AUKUS review has doubled down on Australia's need to increase defence spending, following reports that Australian defence officials have been urged to commit to supporting the United States if China were to invade Taiwan. US Undersecretary of Defence Elbridge Colby said the US' position of 'achieving peace through strength' was 'abundantly and consistently clear,' and would include urging allies to 'step up their defence spending and other efforts related to our collective defence'. This follows Mr Hegseth's call for Australia to boost immediately boost investment from 2 per cent to 3.5 per cent of GDP, about $40bn, significantly beyond Labor's current commitment to reach 2.33 per cent by 2033. While Mr Colby, a noted China hawk, didn't name countries who are lagging on their funding commitments, he said the US would 'not be deterred'. Eldridge Colby's call comes as Australia has resisted calls from the US to increase spending. NewsWire/ Nikki Short Credit: News Corp Australia 'Of course, some among our allies might not welcome frank conversations. But many, now led by NATO after the historic Hague Summit, are seeing the urgent need to step up and are doing so,' he wrote on X. 'President Trump has shown the approach and the formula – and we will not be deterred from advancing his agenda.' His comments follow reports in the Financial Times on Saturday that Mr Colby has been pushing Japanese and Australian defence officials on their response if China invaded Taiwan, an outcome US Defence Secretary Pete Hegseth said was an 'imminent' threat. Quoting one US official, they told the UK publication that while the US does 'not seek war,' or to 'dominate China,' the US wants to ensure both it and its allies 'have the military strength to underwrite diplomacy and guarantee peace'. Speaking to the ABC on Sunday, Acting Defence Minister Pat Conroy would not 'engage in hypotheticals' or 'disclose confidential discussions'. 'The sole power to commit Australia to war or to allow our territory to be used for a conflict is the elected government of the day,' he said. 'That is our position. Sovereignty will always be prioritised, and that will continue to be our position.' Defence Industry Minister Pat Conroy addresses the National Press Club of Australia in Canberra. NewsWire / Martin Ollman Credit: News Corp Australia Australia has repeatedly rebuffed calls from the US to boost defence spending, stating that the amount will be decided according to Australia's sovereign needs, which has in-turn put pressure on the alliance, and Anthony Albanese's attempts to secure a tariff exemption. While politically, the Prime Minister is under increasing pressure to secure a meeting with Mr Trump, the leaders are set to have a face-to-face talk in early September during the Quad meeting in India. This will also be the first in-person meeting between Mr Albanese and Mr Trump since the President's re-election in November, however the leaders have shared three phone calls. Echoing comments made by Anthony Albanese, who is currently on a six-day diplomatic mission in China, Foreign Minister Penny Wong last week said that said Australia's security should not be defined 'simply in the terms of what China or the United States is doing in the regions'. 'Instead Australia will 'take our own approach to our relationships, to the rules and to this region that we share,' she said while attending the ASEAN Summit in Malaysia.
