Vantage | Why Australia, China are trying to patch up

In recent years, the relationship between China and Australia has been marked by tension and strife. These two nations, once dubbed “frenemies”, found themselves entangled in disputes ranging from alleged interference in Australian elections to a devastating trade war. However, a recent turn of events suggests that both countries are willing to bury the hatchet and embark on a new chapter of their diplomatic relationship. Troubled past China and Australia had been at odds for a significant period. China was accused of attempting to interfere in Australian elections and even allegedly trying to install a spy within the Australian parliament. These incidents were followed by charges of large-scale espionage and, most notably, the outbreak of the COVID-19 pandemic. Australia was the first country to demand an international probe into the origins of the virus, which did not sit well with Beijing. In response, China imposed a trade war on Australia, causing significant economic losses and exacerbating an already complicated relationship. A fresh start with Anthony Albanese However, in 2022, Australia saw a change in leadership as Anthony Albanese assumed the position of the prime minister. His mission was clear: mend what was broken and reestablish amicable relations with China. Albanese’s visit to China in the present context couldn’t have come at a better time as it coincides with the 50-year anniversary of diplomatic ties between the two nations. It was Gough Whitlam, the former Prime Minister of Australia, who normalised the relationship with China by visiting the country, becoming the first Australian leader to do so. Albanese’s visit echoes Whitlam’s historical move and this did not escape the attention of Chinese president Xi Jinping. A promising reset During Albanese’s visit, he and Xi Jinping agreed to bury the hatchet, signalling a promising reset in the relationship. Xi recognised the significance of this visit stating that it builds on the past and ushers in the future. The Chinese president expressed his delight at the improved path of the China-Australia relationship. Before Albanese’s visit, both nations had already made considerable progress. Australia had lifted some anti-dumping tariffs on China and Beijing had promised to ease restrictions on Australian wine imports. Additionally, China released Cheng Lei, an Australian journalist who had spent three years in Chinese detention. These measures paved the way for a truce that benefits both sides. Benefits of reconciliation For Australia, the truce means the resumption of a crucial export market, particularly in key sectors such as barley, beef, wine, coal, timber and lobster. The trade sanctions imposed by China had caused serious economic losses, estimated at around $20 billion. Now, Australia can hope to recover these losses and continue its trade with China. On the other hand, China seeks Australia’s natural resources, particularly coal and liquefied natural gas. As an energy-hungry nation, China relies on coal to power its industries and produce steel. The resumption of coal sales to China and the increased purchase of Australian oil strengthen China’s energy supply, contributing to its industrial and economic growth. Challenges on the horizon While the China-Australia reset appears promising, there are challenges on the horizon. China is expanding its influence in Australia’s backyard, notably in the Solomon Islands. The Prime Minister of the Solomon Islands, Manasseh Sogavare, is seen as leaning toward China, a move that could alter the balance of power in the Pacific region. Sogavare’s decision not to attend a recent meeting of Pacific Island leaders and his invitation to China to provide security for the upcoming Pacific Games have raised concerns. China is sending its police forces including a liaison team and policing equipment, which has unsettled Canberra. As Albanese seeks to reset ties with China, the resilience of this reset will be tested in the face of China’s expanding influence in the Pacific region and the delicate balance of power in the Asia-Pacific. Both nations have taken steps to mend the strained ties with the hope of resuming critical trade and strengthening economic cooperation. However, challenges remain, particularly concerning China’s expanding influence in the Pacific region. As both countries seek to reconcile and move forward, the resilience of this reset will be crucial in shaping the future of their diplomatic relationship. Views expressed in the above piece are personal and solely that of the author. They do not necessarily reflect Firstpost’s views. Read all the Latest News, Trending News, Cricket News, Bollywood News, India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.