Chinese premier visits Australia to mend strained relations, promises to send more Pandas

Chinese premier visits Australia to mend strained relations, promises to send more Pandas

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Chinese Premier Li Qiang arrived in Adelaide, South Australia, on June 15, marking the first visit by a high-ranking Chinese leader to Australia in seven years. Li’s trip is focused on the revival of trade and the restoration of diplomatic links between Australia and China.

Upon his arrival, Li emphasized the importance of mutual respect and beneficial cooperation in the bilateral relationship, stating, “History has proven that mutual respect, seeking common ground while shelving differences and mutually beneficial cooperation are the valuable experiences in growing China-Australia relations.”

The focus was on panda diplomacy, followed by attempts to resolve trade issues, improve business ties, and expand China’s investment in critical minerals, and clean energy. During the trip, Chinese Premier Li Qiang spent a day in Western Australia speaking with business leaders with talks focused on critical minerals and clean energy.


Li Qiang and Albanese agree to manage differences

Li, China’s second-most powerful leader after President Xi Jinping, became the first Chinese premier to visit Australia since 2017. The four-day visit marks the latest step in “stabilizing” a relationship that hit rock bottom in 2020.

Chinese Premier Li Qiang said he agreed with Australian Prime Minister Anthony Albanese on Monday to properly manage their nations’ differences and trade barriers that cost Australian exporters up to 20 billion Australian dollars ($13 billion) a year. Li told reporters that the bilateral relationship was “on the right track of steady improvement and development.” “We … had a candid exchange of views on some differences and disagreements and agreed to properly manage them in a manner befitting our comprehensive strategic partnership,” Li said.

Albanese, who in November last year became the first Australian prime minister to visit China since 2016, described the talks as “constructive,” adding that “Australia advocates that we should all work together to promote a regional balance where no country dominates and no country is dominated.” Australian leaders said “I’ve made it clear as nations with different histories, political systems and values, we will cooperate with China where we can, disagree where we must and engage in the national interest.”

The two leaders signed agreements to further collaboration on climate action, education, and culture. They also agreed to enhance the Free Trade Agreement along with the resumption of high-level economic dialogue.


Panda diplomacy and trade relations

In a gesture of goodwill, Premier Li announced that China would loan a new pair of giant pandas to Adelaide Zoo after the current pair, Wang Wang and Fu Ni, return to China in November.

“China will soon provide another pair of pandas that are equally beautiful, lively, cute and younger to the Adelaide Zoo, and continue the cooperation on giant pandas between China and Australia,” Li said in Mandarin, adding that zoo staff would be invited to “pick a pair.”

Australian Foreign Minister Penny Wong expressed gratitude for Li’s generous offer and highlighted the symbolic and economic significance of the panda loan. “It’s good for the economy, it’s good for South Australian jobs, it’s good for tourism, and it is a signal of goodwill, and we thank you,” Wong said.

Li’s visit to Australia highlights the recovery of trade relations between the two countries, particularly in the wine industry. South Australia has produced most of the Australian wine exported to China since crippling tariffs were lifted in March. This marked a significant rebound after Beijing imposed trade restrictions in 2020 on various Australian exports, costing up to $13 billion annually.

Chinese Premier Li Qiang with Australian MP Peter Malinauskas
Chinese Premier Li Qiang with Australian MP Peter Malinauskas. (Image Credit: X/@SenatorWong)

Foreign Minister Wong noted that Li’s visit resulted from “two years of very deliberate, very patient work by this government to bring about a stabilization of the relationship and to work towards the removal of trade impediments.” She emphasized, “We will cooperate where we can, we will disagree where we must, and we will engage in our national interest.”

The constructive meetings and developments are seen as a significant diplomatic gesture by the Chinese community since Australia is home to 1.4 million people of Chinese ancestry. “The Chinese-Australian community – and the proud, beating heart of your community culture that you carry within you – are such an important part of our national story and our national identity,” the Australian prime minister said in his address to the community welcome banquet for Premier Li Qiang held in Perth on June 18, 2024. Albanese described Chinese-Australians as “an important link” between Australia and China.


Despite the improved relations, tensions remain, particularly regarding military clashes in the South China Sea and the fate of detained Australian citizens in China.

Australia, aligned with U.S. concerns, has recently moved to limit Chinese influence in its critical minerals industry. Australian Treasurer Jim Chalmers ordered several Chinese-linked companies to divest their shares in Northern Minerals, a rare earth mining company. Despite this, Wong emphasized that Australia’s foreign investment framework remains open, indicating a willingness to grow the critical minerals industry with appropriate safeguards.

Premier Li’s visit to Australia, part of a broader tour including New Zealand and Malaysia, is a cautious but hopeful step towards rebuilding a complex relationship between the two nations.

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