Opinion | How Australia can use the Trump tariff pause to stabilise ties with China

Australia stands at a critical crossroads in its relationship with China. Recent news of Australian Prime Minister Anthony Albanese’s planned second official visit signals yet another step in stabilising the Australia-China relationship. The timing is notable: the 90-day pause in the US-China tariff war gives Australia the opportunity to pursue its own trade and diplomatic interests in a shifting regional landscape.

As a middle power with a small population and an export-driven economy, Australia has long managed a dual dependency with its security underpinned by the United States and its economic prosperity driven by China. In 2023, China bought more than A$219 billion (US$142 billion) worth of Australian exports, nearly one-third of Australia’s total global exports.

Relations have been fraught for much of the past decade. Tensions escalated after Australia’s 5G network ban of Huawei and ZTE and concerns over foreign interference. The relationship sharply deteriorated when then-prime minister Scott Morrison called for an independent inquiry into Covid-19, prompting Beijing to impose sweeping trade restrictions in retaliation.

Since taking power in 2022, the Albanese government has overseen a thaw in relations. The prime minister’s 2023 visit to Beijing marked a diplomatic reset, followed by Canberra’s suspension of two World Trade Organization cases against China. In late 2024, Beijing lifted its remaining trade restrictions on Australian goods.

At present, Canberra’s approach is framed as “cooperate where we can, disagree where we must”, but there are persistent differences, such as over the South China Sea and China’s expanding influence in the Pacific Islands. Concurrently, concerns about the reliability of an increasingly transactional US administration add urgency to Australia’s efforts to cultivate a stable, constructive relationship with China.