How Australia can use the Trump tariff pause to stabilise ties with China
Australia stands at a critical crossroads in its
relationship with China . Recent news of Australian Prime Minister Anthony Albanese's planned second official visit signals yet another step in stabilising the Australia-China relationship. The timing is notable: the
90-day pause in the US-China tariff war gives Australia the opportunity to pursue its own trade and diplomatic interests in a shifting regional landscape.
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As a middle power with a small population and an export-driven economy, Australia has long managed a dual dependency with its security underpinned by the United States and its economic prosperity
driven by China . In 2023, China bought more than A$219 billion (US$142 billion) worth of Australian exports, nearly one-third of Australia's total global exports.
Since taking power in 2022, the Albanese government has overseen a thaw in relations. The prime minister's
2023 visit to Beijing marked a diplomatic reset, followed by Canberra's suspension of two World Trade Organization cases against China. In late 2024, Beijing lifted its
remaining trade restrictions on Australian goods.
At present, Canberra's approach is framed as 'cooperate where we can, disagree where we must', but there are persistent differences, such as over the South China Sea and China's expanding influence
in the Pacific Islands . Concurrently, concerns about the reliability of an increasingly transactional US administration add urgency to Australia's efforts to cultivate a stable, constructive relationship with China.
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Against this backdrop, Australia has a strategic window to recalibrate its China policy. Despite ongoing challenges, there are three clear steps it can take to strengthen and future-proof bilateral ties.
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