Australian PM Albanese Wraps Up China Visit, Cautious Optimism as Trade Barriers Ease

Albanese calls for "full resumption of free and unimpeded trade", marking the first interaction in four years; Trade restrictions on beef and lobster still persist despite progress.

Australian Prime Minister Anthony Albanese concluded a four-day visit to China, marking a significant step in repairing strained ties between the two countries. During his meeting with Chinese President Xi Jinping, Albanese praised the substantial progress in restoring trade relationships, which he described as 'unquestionably very positive' and mutually beneficial.
The relationship between Australia and China started declining in 2017 when Australia accused China of political interference, including alleged influence peddling by Beijing-linked donors. In response to Australia's call for an investigation into the origins of COVID-19 in 2020, China imposed import restrictions on Australian commodities such as timber, coal, barley, lobsters and wine worth €12.2 billion.
The election of Albanese's center-left Labour Party in 2022 opened an opportunity to reset the strained relations. Following the first formal meeting between Australian and Chinese leaders at the 2022 G20 summit in Bali, China lifted its informal ban on Australian coal imports in March 2023, followed by timber in May and barley in August.
While the relationship seems to be improving, trade barriers are still in place on key Australian exports such as beef and lobsters. However, the Australian Trade Minister Don Farrell expects these remaining restrictions to be removed soon, indicating a return to normal trade relations.
Despite the change in political tone, Australia has remained cautious about its relationship with China. The country continues to align with the United States in contending China's increasing military strength in the Pacific, maintaining its participation in the AUKUS trilateral defense partnership, which China perceives as 'anti-China'.