“President Xi Jinping is strongly committed to enhancing bilateral relations with Australia” – Australian Prime Minister

“President Xi Jinping is strongly committed to enhancing bilateral relations with Australia” – Australian Prime Minister

Beijing, July 15, 2025 – Chinese President Xi Jinping stated during a high-level meeting with Australian Prime Minister Anthony Albanese in Beijing on Tuesday that China is ready to make its bilateral relationship with Australia “deeper and stronger.”

This strategic meeting comes at a time when U.S. President Donald Trump is imposing a new wave of trade tariffs on various countries, and China is aiming to present itself as a stable, responsible, and reliable trade partner amid global uncertainty.

At the start of the meeting, President Xi Jinping said:

“China-Australia relations are progressing positively. We are ready to deepen cooperation based on mutual respect and equality.”

In response, Prime Minister Anthony Albanese said:

“China is Australia’s largest trading partner. Through this visit, we are hopeful about expanding our free trade agreement and opening new avenues for cooperation in artificial intelligence.”

He further added:

“Australia’s foreign policy is driven by our national interests. We will cooperate where possible and express disagreement where necessary — that is the core of our diplomatic philosophy.”

New Frontiers of Cooperation: Free Trade and AI

Chinese officials stated they are interested in expanding the decade-old free trade agreement, particularly in sectors like artificial intelligence, green energy, and technology exports.

After the meeting, the Australian delegation noted that discussions were held on agreements related to agriculture, mineral resources, energy, and education.

Unresolved Issues and Limitations

However, certain unresolved issues remain between the two nations. Australia continues to express concern over the imprisonment of Australian writer Yang Hengjun in China, as well as the aggressive expansion of China's military capabilities.

China, on the other hand, has expressed dissatisfaction with Australia’s strict foreign investment review process and Canberra’s pledge to cancel the lease agreement for the Port of Darwin.

Trade Representation and Industry Dialogues

As part of the visit, the top three companies in Australia’s mining sector — Rio Tinto, BHP, and Fortescue — held discussions with China’s leading steel producers.

A special commercial roundtable included participants such as Australia’s Bluescope Steel, China’s electric vehicle giant BYD, state-owned food conglomerate COFCO, Baosteel, and several Chinese commercial banks.

Bran Black, CEO of the Business Council of Australia, stated:

“Through this visit, we aimed to send a clear message — business-to-business relations should rise above political constraints.”

The Future of China-Australia Relations: Mutual Dependence vs Strategic Distance

Australia’s exports to China are still heavily dependent on iron ore, coal, wheat, and liquefied natural gas (LNG). However, Canberra is now seeking to build a more balanced relationship with China, focusing on green energy, artificial intelligence, and security cooperation.