Chinese President Xi Jinping has welcomed visiting Australian Prime Minister Anthony Albanese in Beijing, as both sides emphasized the importance of renewed dialogue and deeper cooperation across key sectors. Rajiv Biswas, CEO of Asia-Pacific Economics, noted that as China continues to cement its position as the world’s second-largest economy, it also serves as a powerful engine for growth in China-Australia trade.
00:00As China has evolved into becoming the world's second largest economy, it's also been a very powerful growth engine for bilateral trade between Australia and China, which has grown from just five billion Australian dollars in terms of Australian exports to China back in the year 2000 to a level in 2024 when Australian exports had reached around 200 billion Australian dollars.
00:29And that relationship has been built very much on exports of Australian iron ore, natural gas, coal and also services such as education and tourism.
00:42So I think these are very strong building blocks for the future.
00:46But how much of a predicament is Australia in dealing with its biggest security ally, the United States, and its largest trading partner, China?
00:55I think in Australia there's a very strong focus on strengthening ties with China because of its economic importance.
01:07About one third of Australian exports go to China.
01:11So many jobs are very much linked to the Chinese economy.
01:15I mean, I think it's very well understood in business circles and amongst the many people who are employed in industries that are exporting to China, that China is a very important partner.
01:28And we also have to recall that there have been millions of people going both ways between China and Australia over the last several decades.
01:38So I think the understanding between both nations at a grassroots level is quite strong.
01:46There's a strong Chinese community in Australia.
01:49And I think, therefore, the building blocks for grassroots cooperation are very good.
01:54But, of course, there is, you know, some ups and downs in the bilateral relationship.
01:59As with many other Asia-Pacific nations, I think most nations in the region are trying to have good relations with both the U.S. and with China, which are the two world's, you know, leading economies.
02:15Albanese has come under some criticism at home, though, hasn't he?
02:19Because this trip comes before he's even been able to secure a meeting with United States President Donald Trump.
02:25Well, again, China is the biggest export partner for Australia.
02:34Australian exports to China are 33% of total exports.
02:38So from an economic point of view, it's a very high priority for the Australian government and large Australian companies to, you know, strengthen bilateral ties with China.
02:54And so that's why you see a very large business delegation of Australian business leaders has accompanied Prime Minister Albanese on this visit, because for many of the largest companies in Australia, China is a crucial market.
03:12And it's very important to strengthen that market and strengthen ties.
