Fixing our relationship with China
Cook AP
Author
Australia-China relations have transformed from confrontational trade sanctions and frozen diplomacy under the Coalition to a pragmatic engagement approach under Labor that balances security interests with economic recovery.
Coalition Era: Deteriorating Relations (2013-2022)
The Australia-China relationship deteriorated significantly during the Coalition government years, particularly under Scotty from Marketing. What began with the successful China-Australia Free Trade Agreement (ChAFTA) in 2014 under Abbott gradually devolved into one of Australia's most challenging diplomatic relationships.
The key turning points included:
Increased security concerns: Australia's ban on Huawei from the 5G network and legislation targeting foreign interference were viewed by China as hostile actions
Call for COVID-19 inquiry: Australia's 2020 push for an independent investigation into COVID-19 origins prompted Beijing to label it "a joke"
Trade sanctions: China imposed punitive measures on approximately $20 billion of Australian exports including wine (tariffs up to 220%), barley, coal, lobster, and other products
The "14 grievances": In November 2020, China presented Australia with a list of demands, with the warning that "if you make China the enemy, China will be the enemy"
AUKUS announcement: The 2021 security partnership with the US and UK was interpreted by Beijing as explicitly targeting China
By early 2022, diplomatic channels had effectively frozen, with ministerial contacts suspended and trade relations severely damaged.
Labor Government: Diplomatic Reset (2022-Present)
The Albanese government has prioritised stabilising the relationship while maintaining Australia's core security interests and values. This approach has yielded significant results:
Diplomatic Re-engagement
High-level dialogue restored: Since 2022, PM Albanese has met President Xi multiple times, including a historic visit to Beijing in November 2023
Regular ministerial contacts: Foreign Minister Wong has held eight meetings with her Chinese counterpart since 2022
Consistent approach: Australia has maintained its security positions (including AUKUS) while opening communication channels
Trade Barrier Removal
Wine tariffs abolished: In March 2025, China officially lifted heavy tariffs on Australian wine
Barley restrictions removed: China ended punitive measures on Australian barley in 2023
Coal imports resumed: China's unofficial ban on Australian coal ended in early 2023
Broader recovery: Almost $19 billion worth of exports have had trade impediments removed (based on 2019 figures)
Economic Benefits
Two-way trade increase: Trade with China grew 2.6% in 2023-24, totaling $325 billion (26% of Australia's global trade)
Services exports rebounding: Up 42.3% with increased travel and returning students
FDI relationship: China remains the fifth-largest foreign direct investor in Australia ($47 billion in 2023)
[1] https://en.wikipedia.org/wiki/Australia%E2%80%93China_relations#Political_relations
[2] https://www.abc.net.au/news/2025-02-28/why-china-favours-labor-over-the-coalition-in-the-election/104990318
[3] https://china.embassy.gov.au/bjng/relations1.html
[4] https://www.dfat.gov.au/geo/china/china-country-brief
[5] https://www.abc.net.au/news/2024-03-28/china-government-officially-abolishes-heavy-tariffs-on-wine/103644884
[6] https://treasury.gov.au/consultation/c2024-506306