Albanese, Xi meet in Beijing to boost China-Australia cooperation amid strategic tensions

Albanese, Xi meet in Beijing to boost China-Australia cooperation amid strategic tensions

FP News Desk July 15, 2025, 18:39:46 IST

Albanese’s visit to China comes as Beijing seeks to capitalise on US President Donald Trump’s sweeping trade tariffs by portraying itself as a steady and dependable partner

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Albanese, Xi meet in Beijing to boost China-Australia cooperation amid strategic tensions
Australian Prime Minister Anthony Albanese, right, talks to China's President Xi Jinping, second left, in the Great Hall of the People in Beijing, China. AP

Despite strategic competition in the Indo-Pacific region, China and Australia will maintain open discussion and seek areas of collaboration, according to Australia Prime Minister Anthony Albanese, who met with Chinese President Xi Jinping in Beijing on Tuesday.

Albanese’s state visit to China is his second since being elected prime minister in 2022.

Australia, like many other Asian-Pacific countries, is stuck between China and the US. Its economy relies mainly on exports to China, particularly iron ore for the steel sector. However, it shares America’s concerns about China’s human rights record and its increasing military presence in the Pacific, notably in areas near Australia.

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China was eager to “promote further development in the China-Australia relationship,” Xi stated at the outset of the meeting.

Albanese’s visit to China comes as Beijing seeks to capitalise on US President Donald Trump’s sweeping trade tariffs by portraying itself as a steady and dependable partner.

Australia’s commercial relationship with China was distinct from Canberra’s handling of US tariffs, Albanese told reporters following a lunch with Xi at the Great Hall of the People.

Albanese stated that a decade-old free trade deal with China, Australia’s largest trading partner, will be examined, and the two presidents agreed to possible new collaboration on decarbonisation.

Albanese stated that he addressed Australia’s worries about the Chinese navy’s conduct of short notice live fire drills in the Tasman Sea between Australia and New Zealand in February.

Xi answered that China “engages in exercises in the same way that Australia does,” Albanese told reporters.

“We have strategic competition in the region but we continue to engage in order to support peace and security in the region and stability in the region,” according to him.

According to Chinese state media source Xinhua, Xi underlined at the meeting that China and Australia should continue to strengthen strategic mutual confidence, establish a favourable economic environment for both sides, and “safeguard multilateralism and free trade” in the face of a complex global landscape.

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“Dialogue needs to be at the centre of our relationship,” Albanese stated in his opening words to Xi.

Albanese is set to meet with Chinese Premier Li Qiang later on Tuesday.

Under Albanese, Australia, which sees the United States as its primary security friend, has followed a “cooperate where we can, disagree where we must” China policy.

In the run-up to the visit, China signalled repeatedly it was open to deeper cooperation. On Tuesday, the state-owned China Daily newspaper published a glowing opinion piece about the visit and said it showed countries with different political systems could still cooperate.

However, any cooperation is likely to be constrained by long-standing Australian concerns around China’s military build-up. Albanese said he had raised the case of jailed Australian writer Yang Hengjun with Xi.

Beijing has previously criticised Canberra’s increased screening of foreign investment in critical minerals and Albanese’s pledge to return a Chinese-leased port to Australian ownership.

Australia’s exports to China span agriculture and energy but are dominated by iron ore, and Albanese has travelled with executives from mining giants Rio Tinto, BHP, and Fortescue, who met Chinese steel industry officials on Monday, at the start of the six-day visit.

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Albanese is in Beijing at the midpoint of a weeklong trip to China that started in Shanghai, China’s commercial capital, where government and business leaders from the two countries discussed deepening cooperation in tourism and reducing carbon emissions in iron ore mining and steel production.

From Beijing, he will travel to Chengdu, the capital of Sichuan province, where he said he would focus on growing ties in medical technology and sports.

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