Australian foreign minister Penny Wong met with her Chinese counterpart Wang Yi on the sidelines of the G20 foreign ministers meeting in Bali, Indonesia over the weekend, marking the second senior ministerial meeting between the two countries in less than a month after an absence of two years, as both countries embark on a path to stabilise trade and diplomatic relations.
The bilateral meetings coincide with the election of the Australian Labor party on 14 May, following nine years of rule by the Liberal-National coalition, which was marked in its latter years by deteriorating relations with its largest trading partner. Australian defence minister Richard Marles and his Chinese counterpart Wei Fenghe met in Singapore on 12 June, officially reopening diplomatic channels after two years and possibly moving towards a resumption of trade ties.
"Tonight I met with Chinese foreign minister Wang Yi. We spoke frankly and we listened carefully to each other's priorities and concerns," Wong said after the Bali meeting. "As you would expect, I raised a number of issues in relation to bilateral, regional and consular issues. Australia and China have gained much due to the strength of our economic and people to people ties. We do have our differences. We believe it is in the interests of both countries for the relationship to be stabilised."
Canberra wants Beijing to ease trade restrictions, including a ban on imports of Australian coal and import tariffs on other commodities such as barley and beef. Although Australia has continued to be a significant supplier of iron ore and LNG to China.
"I think all of these issues will take some time and I think there is a path we are walking and we will take one step at a time in the interest of the country," Wong said.
Australia's export receipts from China accounted for 25.3pc of all export receipts in May, monthly trade data show, the lowest share since January 2019 when it was around 24.5pc and down from 40pc in July 2021.
The new tone in China-Australia bilateral relations will be tested this week with the latest Pacific Islands Forum when the issue of China's defence co-operation with the Solomon Islands will be discussed.
"There is no doubt that security and security agreements will be a topic at the Pacific Island Forum," said Australian prime minister Anthony Albanese. "That is one of the reasons why I determined to attend. It is in Australia's national interest for me to do so. I'll also be putting very much Australia's national interest and our concerns about some of the developments that have occurred in the region.
"We know we are living in an era of strategic competition in the region. Australia's friendship and relations with a sovereign nations of the Pacific are ones of a friend, a friend that is historically played a role in the region of being a security partner of choice."
Australia will also host the Sydney Energy Forum this week. It will include the gathering of ministers from the Quadrilateral Security Dialogue, or the so-called Quad group of the US, Japan, India and Australia. It aims to build closer co-operation in the supply of critical minerals used in the renewable energy sector, offering an alternative to the perceived dominance of China in the production and purchase of critical metals to build solar panels, batteries and wind turbines.
