Australia hosts China FM, sees 'stability' in ties

Despite apparent concerns over a high-profile prisoner, trade, and a fresh crackdown in Hong Kong, China and Australia claimed to have calmed long-strained ties during meetings in Canberra on Wednesday.

Chinese Foreign Minister Wang Yi travelled to Australia for the first time since 2017, with the goal of resolving conflicts ranging from the origins of Covid-19 to military deployments.

The meeting was preceded with warm words, with Wang stating that the two sides had “broken the ice” and that “mutual trust” and “good momentum” were gradually growing.

Penny Wong, the foreign minister for Australia, recognised “how much progress we have made in a short period of time” and complimented the restored “stability” in the relationship.

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There was even a tacit commitment to extending the Australian sojourn of two giant pandas loaned by China in 2009 – a favourite tool of Beijing diplomacy.

But years of tensions and a fundamental disagreement about the shape of the Asia-Pacific region could not be papered over.

“We discussed the sentencing of Dr Yang Hengjun. I told the foreign minister Australians were shocked at the sentence imposed,” Wong told reporters after the meeting.

Jailed Chinese-Australian writer Yang Hengjun – also known as Yang Jun – was in February handed a suspended death sentence after a Beijing court found him guilty of espionage.

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He vehemently denies the charges.

Wong also raised concerns about human rights in Xinjiang, Tibet and Hong Kong, where pro-Beijing lawmakers on Tuesday passed national security reforms that will further criminalise dissent.

An Australian foreign ministry official said Wong had warned the reforms would “further erode rights and freedoms”, breach international commitments and have “far-reaching impacts, including on individuals in Australia”.

The remarks are unlikely to have gone down well with Wong’s Chinese guest.

Beijing has described similar criticism from Britain, the United States and the European Union as “slandering and smearing”.

As the foreign ministers met, protesters gathered on the lawns of Australia’s parliament, drawing attention to alleged human rights abuses within China.

A small group of demonstrators later clashed with police outside the Chinese embassy, brandishing Tibetan flags and shouting “free Tibet” as they rushed towards the building’s front gates.

Trade restrictions

Australia’s relationship with China began unravelling in 2018, when Canberra excluded telecommunications giant Huawei from its 5G network on security grounds and later passed laws on foreign interference.

Then in 2020, Australia called for an international investigation into the origins of Covid-19 – an action China saw as politically motivated.

In response, Beijing slapped trade restrictions on a slew of Australian exports, including barley, beef and wine, while halting its coal imports.

Most of those barriers have been gradually wound back as relations have been repaired.

Wang said a final decision on ending wine tariffs would be made at the end of the month, signalling restrictions could soon be lifted.

Before the trade restrictions were imposed, China was the largest destination for Australian bottled wine – accounting for 33 percent of export revenue in 2020, according to Australian government data.

Wong said the talks had also touched on the global nickel market, which has been upended by a surge in exports from Indonesia – enabled by massive Chinese investments and a revolution in refining techniques.

Prices have fallen about 40 percent in the past year alone, prompting many once-dominant Australian firms to rethink projects or write down the value of their assets.

Wang later told an Australia-China business council that common interests between the two countries far outweigh their differences.

“China is Australia’s largest trading partner and the biggest customer for our products like iron ore”, said Rio Tinto mining executive and meeting participant Simon Trott, welcoming a “stabilisation” of relations.