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China-Australia Relations Show Signs of Improvement With Trade Review

Chinese Vice Foreign Minister Ma Zhaoxu is set to visit Australia following Canberra’s decision to temporarily suspend its case against Beijing at the World Trade Organization.

April 11, 2023
China-Australia Relations Show Signs of Improvement With Trade Review
									    
IMAGE SOURCE: XINHUA
Chinese Vice FM Ma Zhaoxu speaks at a UN Security Council high-level debate on 4 February, 2019.

In a sign of relations thawing between China and Australia, Chinese Vice Foreign Minister (FM) Ma Zhaoxu is set to visit Australia and Fiji this week.

Confirming the news, Chinese Foreign Ministry spokesperson Wang Wenbin told a press conference that Ma will “hold the new round of political consultation between the officials of the foreign ministries of China and Australia.”

Thawing of Trade Ties

Ma’s visit to Australia coincides with Australian FM Penny Wong announcing on Tuesday that Canberra will temporarily suspend its case against Beijing at the World Trade Organization (WTO).

“China has agreed to undertake an expedited review of the duties imposed on Australian barley over a three-month period, that may extend to a fourth, if required,” Wong said. “In return, [Australia has] agreed to temporarily suspend the WTO dispute for the agreed review period,” she added.


Meanwhile, China has issued an invitation “in principle” for Australian PM Anthony Albanese to visit Beijing later this year. While there is no set date for the meeting yet, it is expected to take place around September and October to coincide with the 50th anniversary of the first visit to China by an Australian PM.

History of Escalating Tensions

Tensions between the two countries began to mount after former Australian PM Scott Morrison and FM Marise Payne repeatedly called for an international investigation into the coronavirus pandemic, including its source, how it spread, and China’s culpability. 

In addition, Morrison’s government continually expressed concerns over human rights abuses in China.

Subsequently, China suspended trade with Australia and imposed anti-dumping duties and tariffs on several Australian exports, including wine and barley.

In retaliation, Australia abandoned China’s Belt and Road Initiative. In June 2021, Australia approached the WTO to launch proceedings against China for unjust tariffs on Australian goods.