Jim Chalmers visits Beijing, emphasizing economic ties and cooperation amid improving Australia-China relations and trade dynamics.
Australian Treasurer Jim Chalmers concluded his visit to Beijing on Friday, showing appreciation for China’s efforts to boost its economy, which has negatively affected Australia.
This trip is significant as it’s the first by an Australian treasurer to China in seven years, marking a thaw in their previously tense relations.
Chalmers highlighted that Australia’s economic slowdown is due to global uncertainties, high interest rates, and China’s economic issues.
He mentioned that Australia views China’s economic measures positively as they could stimulate growth.
China’s economic health is crucial for Australia, being its largest export market for iron ore and coal.
Chalmers noted that China’s economic growth is expected to remain low for the next three years, the weakest since the late 1970s.
During his visit, discussions focused on the Australia-China Strategic Economic Dialogue, which aims to increase trade and investment after a seven-year pause due to diplomatic tensions.
China has recently reduced trade restrictions on Australian goods, cutting losses from AU$20 billion to AU$1 billion annually.
Zheng Shanjie, head of China’s National Development and Reform Commission, praised the improving relations between the two countries since the Labor Party took office in 2020, seeing it as an opportunity rather than a challenge.
He emphasized the importance of economic cooperation in uncertain times.
Australian treasurer welcomes Chinese efforts to stimulate economy during Beijing visit https://t.co/1fjBnJyw0l pic.twitter.com/lrYPxzBMkh
— The Independent (@Independent) September 27, 2024
Trade between Australia and China hit an all-time high last year, more than double the figures from when they signed a free trade agreement in 2015.
Chalmers was expected to discuss China’s import restrictions on Australian lobsters and beef, while the Chinese delegation would likely express concerns about Australia’s foreign investment rules.
China’s interest in investing in Australian critical minerals is complicated by Australia’s cooperation with the U.S. on security concerns about China’s potential dominance in this area.
Recently, Chalmers directed five Chinese companies to divest from Northern Minerals, a rare earth mining company, citing national interests.
As China’s economy faces challenges from COVID-19, including weak consumer demand and factory production declines, it has introduced new measures to stimulate growth, such as reducing bank reserve ratios and interest rates for loans.
There are also plans to reallocate a significant amount of funds to six major state-owned banks.
Despite economic progress, China’s strong military actions have caused concern, especially in Asia-Pacific.
Chalmers highlighted a recent incident where a Chinese aircraft carrier and two destroyers entered Japanese waters, along with worries about China’s test of an intercontinental ballistic missile in the Pacific.
Chalmers stressed the need for all military forces to act safely and professionally, focusing on the importance of economic cooperation over security issues.
