China’s Australia trade sees more EVs, green tech even as EU, US tariffs fly

Unlike its allies in the West, Australia has kept its doors open to Chinese and green tech. What accounts for this divergence?

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Australian Prime Minister Anthony Albanese and Premier Li Qiang in Canberra, Australia on June 17. The two countries’ trade relationship has warmed after several years of tensions. Photo: Reuters

Published: 7:00am, 16 Oct 2024

Though the United States, Canada and European Union have slapped hefty tariffs on Chinese electric vehicles (EVs) in the name of national security or combating excessive state subsidies, Australia – while still broadly in step with the West politically – has remained open to Chinese-made EVs and other products aiding in its green transition.

In contrast to its allies’ tit-for-tat trade barbs, analysts noted Australia’s “structured partnership” with China – the East Asian country sells the island nation a bevy of consumer goods, importing natural gas and iron ore in return – and lessons learned from a period of relatively high tensions between 2020 and 2023.

In a meeting with Premier Li Qiang in Laos on Thursday, Australian Prime Minister Anthony Albanese affirmed the importance of institutional dialogue, including an annual ministerial conference on climate change held in Sydney in August.

And during Australian Treasurer Jim Chalmers’ trip to China in September, both countries stated bilateral interactions related to climate would be essential to the development of renewables and investment in low-carbon technology.

“By recognising China’s dominance in renewable energy technology, Australia can carry a ‘win-win’ mindset that emphasises mutual benefit,” said Linda Lau, head of legal at Trina Solar, a global solar power and battery storage solutions developer.

Lau – also an alumna of the Australia-China Youth Dialogue, an annual gathering of up-and-comers from both countries – attributed Australia’s divergent approach to its geographic location, economic structure and renewable energy landscape.