Australian Treasurer Jim Chalmers Praises Chinese Economic Stimulus Measures Amid Bilateral Trade Talks

Australian Treasurer Jim Chalmers emphasized the significance of Chinese efforts to stimulate its economy during his visit to Beijing. This marks the first visit by an Australian treasurer in seven years, aimed at mending strained relations. China's economic measures are anticipated to positively impact Australia's economy.

Australian Treasurer Jim Chalmers on Friday hailed Chinese efforts to invigorate its slow-moving economy, acknowledging the adverse effects on Australia.

Wrapping up a two-day Beijing visit—the first by an Australian treasurer in seven years—Chalmers noted that mending bilateral relations are crucial amid global economic turbulence.

Addressing reporters, Chalmers attributed Australia's economic deceleration to global uncertainty, high interest rates, and China's slowdown.

"These factors collectively slow our economy considerably. We see China's steps to boost economic activity as a very positive development for Australia," Chalmers stated.

China remains Australia's top buyer of key exports like iron ore and coal.

Chalmers emphasized, "Our resilience and prosperity are intertwined with China's and the global economy."

He predicted China's annual economic growth would remain below 5 percent for the next three years, marking the weakest expansion since the late 1970s.

The Beijing meetings revived the Australia-China Strategic Economic Dialogue, aimed at boosting trade and investment after a seven-year gap.

In 2020, China's trade bans cost Australian exporters AU$20 billion annually. Now, these "trade impediments" incur less than AU$1 billion yearly.

China's National Development and Reform Commission chair Zheng Shanjie acknowledged improved relations since Australia's Labour Party took power in 2020.

"Our development represents opportunities rather than challenges," Zheng said through an interpreter.

Record bilateral trade reached AU$327 billion in 2022, double its 2015 value.

Chalmers was set to address Chinese restrictions on Australian lobsters and red meat, while China aimed to discuss investment in Australian critical minerals.

Citing national interests, Chalmers had recently ordered Chinese-linked companies to divest shares in Northern Minerals.

China's post-COVID economic challenges include weak consumer demand and deflation.

This week, China introduced measures to rejuvenate its economy, including a reduction in bank reserve requirements and lower interest rates.

Unconfirmed reports suggest a potential trillion-yuan bailout for state-owned banks.

Despite economic collaboration, China's military stance in the Asia-Pacific region remains aggressive.

Chalmers raised security concerns regarding China's recent military actions near Japan and intercontinental ballistic missile testing.

"I reiterated our expectations for safe and professional conduct of militaries operating in our region," Chalmers stated.

"However, our primary focus remained the economy," he added.

(With inputs from agencies.)