Opinion | Trade and talks return, but Australia-China ties need clarity to ensure thaw in relations lasts

After a trade break of more than two years, Australian coal ships have arrived at Chinese ports, indicating hope for goods such as barley, lobster, wine and others on which the Chinese government had imposed hefty sanctions.

Last week’s virtual talks between Commerce Minister Wang Wentao and Australian Trade Minister Don Farrell, the first meeting between the country’s trade ministers since 2019, discussed resuming bilateral and commercial exchanges and improving relations. Ties have been strained in recent years over political, trade and security issues.

Relations deteriorated amid a string of events starting with Australia banning Huawei from its 5G networks. They soured further as Australia’s foreign minister called for an inquiry into China’s response to the Covid-19 outbreak in April 2020, marking the lowest point in bilateral relations.

Australia also faced the brunt of China’s “wolf warrior” diplomacy, wherein diplomatic and ministry officials respond to any criticism or opposition to China with arguments and accusations on social media.

Later, China imposed an 80.5 per cent tariff on Australian barley, barred imports from Australia such as beef and enacted anti-dumping and anti-subsidy reviews on Australian wines. Coal ships were left stranded off the Chinese coast amid China-imposed restrictions. Although China constitutes more than 30 per cent of Australia’s exports, Australia said it would not bend under economic pressure.