Australia and China Strengthen Ties with New Agreements on Trade and Decarbonisation

Australia and China have agreed to enhance cooperation in investment, trade, and decarbonisation, revealed Australian Treasurer Jim Chalmers during his visit to Beijing. The discussions, held with Zheng Shanjie of the NDRC, included China's recent stimulus measures and strategies for green steel and investment policies.

Australia and China have reached new agreements to advance their cooperation in investment, trade, and decarbonisation, Australian Treasurer Jim Chalmers announced on Friday during a rare visit to Beijing. Chalmers commended China's newly unveiled stimulus packages.

The discussion with Zheng Shanjie, chairman of the National Development and Reform Commission (NDRC), spanned three hours on Thursday, focusing on the specifics of these recent measures. 'We are very pleased with the steps Chinese authorities are taking, as indicated in our meetings and publicly,' Chalmers stated in a Beijing press conference, marking the first visit by an Australian treasurer in seven years.

Chalmers highlighted Australia's significant iron ore exports to China, which generate substantial government revenue and are sensitive to shifts in Chinese demand. Talks also touched on trade, investment, and collaborative efforts in decarbonisation, especially concerning green steel. The NDRC reaffirmed a commitment to a transparent and efficient investment framework.

Relations between the two countries were strained in 2017 after Australia accused China of political interference. A 2020 call for a COVID-19 origin inquiry by Australia further strained ties, leading to Chinese trade blocks. These restrictions were lifted following diplomatic efforts by Australia's Labor government, which came to power in 2022.

(With inputs from agencies.)