China-Australia relations: Huawei, ‘sensitive’ tech, critical minerals key test for long-term trade ties

Chinese Commerce Minister Wang Wentao is set to meet Australian counterpart Don Farrell via video ‘in the near future’ amid an easing of trade and political tensions

But issues over lithium, a key material in producing batteries for electric vehicles, and Chinese tech giant Huawei Technologies Co. mean ‘there’s a long way to go’

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Australia’s assistant minister for trade, Tim Ayres (right), met with Chinese counterpart Wang Shouwen on the sidelines of the World Economic Forum’s Annual Meeting in Davos this week. Photo: Twitter

Published: 4:00am, 21 Jan 2023Updated: 6:51pm, 1 Feb 2023

Despite the recent steps made by China and Australia on easing trade tensions, “sensitive” issues related to technology and critical minerals will be the key “test” for Canberra and Beijing to rebuild the bilateral relationship in the long run, analysts and academics said.

Positive signs have emerged as part of moves to lift unofficial bans on coal and lobsters, while Australian Prime Minister Anthony Albanese is keen to work with Beijing to eventually drop formal complaints at the World Trade Organization (WTO) over official Chinese imports tariffs on barley and wine.

Chinese Commerce Minister Wang Wentao will also meet with Australian counterpart Don Farrell via video “in the near future”, according to a report by the state-backed Xinhua News Agency on Thursday citing unnamed sources.

Australia’s assistant minister for trade, Tim Ayres, on Friday also called for the removal of China’s “trade impediments” on Australian exports after meeting with Chinese counterpart Wang Shouwen on the sidelines of the World Economic Forum’s Annual Meeting in Davos.

Wang Huiyao, the founder of the Beijing-based Centre for China and Globalisation think tank, believes that the recent upturn in relations will lead to other economic cooperations, including the return of Chinese tourists and students because both countries have “no historical baggage and border disputes”.