By I. Hansana, Jadetimes News
Chinese Premier's Visit Signals Potential Reset in Australia China Relations
Chinese Premier Li Qiang will visit Australia this weekend, marking his first visit since 2017 and signifying a pivotal moment in the restoration of ties between Canberra and Beijing. This visit comes four years after China imposed trade sanctions on various Australian industries, retaliating against the previous Coalition government's call for an inquiry into the origins of COVID 19.
The trade sanctions resulted in an estimated $20 billion loss for Australian exports. However, the economic pressure from Beijing began to ease two years ago following the election of the Albanese government. Here is an overview of how the affected industries have coped:
Wine Industry
Australian wine producers were significantly impacted by China's imposition of high tariffs, which severely affected the export of premium red wines. Prior to the tariffs in 2020, Australia supplied nearly 40% of China's imported wine, a market worth $1.24 billion annually. Since the removal of tariffs in April, Australian wine exports to China have reached $86 million, surpassing the total sales to China in the previous three years, according to Trade Minister Don Farrell.
Beef Industry
Starting in May 2020, Australian beef producers faced a blacklist from China, with officials citing biosecurity concerns. As a result, the industry sought alternative markets in the United States, Korea, and Japan, although these efforts could not fully compensate for the loss of Chinese buyers. To date, eight Australian beef processors have had their suspensions lifted, leaving two still suspended. The federal government reports that the industry is now over $11.5 billion better off.
Tourism
Chinese tourists, who accounted for almost a third of all international visitors to Australia and were the biggest spenders, dramatically reduced in number due to COVID 19 border restrictions. In 2019, 1.4 million Chinese tourists spent $12.2 billion in Australia. However, attracting Chinese visitors has remained challenging post pandemic, with many opting for destinations closer to home like Thailand.
Seafood Industry
The live lobster industry is the last remaining sector under Chinese trade sanctions. Since 2020, no direct live lobster exports have been made to China following a $2 million shipment being held up at Shanghai customs over contamination claims. The rock lobster industry in South Australia alone employs about 1,000 full time staff. There is optimism that the ban will be lifted following the Chinese Premier's visit.
Agriculture
In May 2020, China imposed an 80.5% tariff on Australian barley exports, prompting Australia to take the case to the World Trade Organization (WTO). Australian farmers successfully found alternative markets in the Middle East. Following the Australian government's decision to withdraw its WTO case, China lifted the tariffs, and barley exports to China have since surged.
Education
Australian educational institutions previously hosted large numbers of Chinese students, contributing billions of dollars to the sector. However, COVID 19 border restrictions led to a significant drop in Chinese student numbers, sparking a broader debate about the reliance on international students for funding.
Coal Industry
About 20% of Australian coal exports were destined for China in 2019, but trade sanctions led to a decline. The industry found new markets in Europe and Japan following the global energy crisis triggered by the Ukraine war in February 2022. China lifted its coal restrictions last January as relations with Australia began to improve.
Premier Li Qiang's visit symbolizes a pivotal step towards bilateral reconciliation, offering a platform to discuss mutual interests, economic cooperation, and regional stability. It underscores Australia's strategic imperative to rebuild trust and cooperation with China, acknowledging the complexities of managing a critical relationship amid global uncertainties. As both nations navigate geopolitical challenges and economic interdependencies, the visit holds promise for recalibrating ties and fostering a constructive dialogue that transcends past grievances, aiming for a sustainable and mutually beneficial future.
