Editorial | New China-Australia relationship puts paid to blinkered approach

For two countries with complementary economic interests, Australia and China have had a damaging falling out. A line is soon to be drawn under it with a four-day visit to Beijing beginning on Saturday by Prime Minister Anthony Albanese, including an expected meeting with President Xi Jinping – the first visit by an Australian leader since 2016. They may even drink a toast to future friendship with Australian wine that has not been subject to tariffs of up to 218 per cent, now being dismantled by China as part of resolution of an acrimonious three-year trade dispute.

Relations already fraught with tension soured in 2020 after Albanese’s predecessor Scott Morrison joined calls for an international probe into the origin of the coronavirus. China responded initially with barley import tariffs, followed by wine and action against other commodities, such as coal and seafood.

It was never in China’s best interests to antagonise Canberra, given that China depends on Australia for reliable, quality supply of critical raw materials like iron ore, coal, lithium. Unfortunately, in recent years Canberra’s attitude to the bilateral relationship has been shaped by big-power rivalry and ideological differences, giving rise to a sinister interpretation of Beijing’s intentions. This may not change any time soon. But there has to be a way for Canberra to manage the competition without creating a hostile relationship. And that is not by allowing itself to be seen to take a leading position in US strategy to contain China, or by taking confrontational steps to arm itself.

Membership of the Aukus defence alliance and Canberra’s nuclear submarine deal with the United States helped prompt China to take a hard line against what hawkish voices in Beijing see as a critical player in the Western containment policy.

Fortunately, there has been a quiet adjustment on both sides, with Canberra gradually shifting towards a more sustainable China policy. This does not mean Australia will abandon its values and principles or reduce its collaboration with Western allies. But the challenge posed by the rise of China is complex. Both sides need to strive to accommodate each other peacefully for the foreseeable future.

Beijing also wants to improve the relationship. It may need to take a tough position to defend core interests, such as Taiwan or the South China Sea, but there are areas in which it can work with Australia to restore relations. We are already seeing more quiet diplomacy at work rather than the megaphone style favoured by the previous Australian administration. It is naive to think that the clock can be wound back a decade on China-Australia ties. Both sides now see each other in a very different light. But they can move on with eyes wide open rather than blinkered with prejudice and misunderstanding.