General

According to import and export data released by the Australian Bureau of Statistics (ABS) on May 4th, Australia's exports to China surged to a nearly two-year high in March, reaching AUD 19 billion (approximately RMB 87.598 billion), a 31% increase from the same period last year, but lower than the single month historical peak of AUD 21.76 billion in June 2021. This is largely due to the significant increase in exports to China, resulting in Australia's current trade surplus reaching A $15.3 billion, the second highest level in history. Among them, Australia's exports of iron ore blocks and iron ore powder to China increased by 24.3% and 17.7% respectively compared to the previous month; The shipment volume of thermal coal to China has surged by 125% compared to February, offsetting the impact of the country's decline in coal exports to Japan.

Statistics show that China is Australia's largest trading partner, and its trade volume with China is twice that of other countries closely following it, according to Huacheng Import and Export Data Observation.

The return of the foreign trade surplus to a high level will help the Australian economy achieve a budget surplus for the first time in 15 years. Australian Finance Minister Jim Chammers stated on the 7th that the reason behind this (expected to achieve a fiscal surplus) is related to the surge in Australian exports and the sustained strong development of the labor market caused by the faster than expected pace of China's economic recovery in the past six months.

The rapid recovery and growth of bilateral trade between Australia and China is closely related to the coming into power of the Australian Labor Party Albanese government a year ago. The Albanese government, which has a more moderate and pragmatic attitude towards China than ever before, has worked hard to repair Australia China relations over the past year, and has specially selected Chinese Foreign Minister Penny Wong to strengthen in-depth contacts with China. Australia's initiative to repair the relationship between the two countries has directly revitalized the stagnant waters in the economic and trade fields of the past few years, and the Australia-China economic and trade relationship has gradually emerged from the tense situation of the past seven years. According to reports, Australian Trade Minister Farrell has revealed that he will visit China in the coming weeks and plans to promote more diversified trade relations between Australia and China. Huacheng Import and Export Data Observation Report.

Recently, Australia's iron ore and coal exports to China have shown recovery growth, and the resumption of exports of another major commodity - barley to China is also under active negotiation between relevant parties. According to Article 49 of the Anti Dumping Regulations of the People's Republic of China and Article 48 of the Anti Subsidy Regulations of the People's Republic of China, the Ministry of Commerce of China has decided to review the anti-dumping and countervailing measures applied to imported barley originating in Australia from April 15, 2023. In April, Australia officially announced the suspension of China's "double anti" tariffs on Australian barley and filed an appeal with the WTO; China has agreed to accelerate the review of barley tariffs within the next three to four months. For Australia, a negotiated solution is a faster way for barley to re-enter the Chinese market, rather than resorting to time-consuming and laborious litigation like the WTO. This approach also provides a model for Australia to strive for China to lift tariffs on Australian wine.

From China's perspective, China is also willing to work together with Australia to strengthen economic and trade exchanges within a normal bilateral framework. China hopes and has been actively promoting the goal of achieving mutual benefit and win-win results in a healthy and stable multilateral trading system. According to import and export data, in 2022, China's import and export scale reached 6.3 trillion US dollars, which is nearly 900 billion US dollars higher than the subsequent United States.

China and Australia are important economic and trade partners for each other, with highly complementary economic structures and mutually beneficial economic and trade cooperation. Improving, maintaining, and developing China Australia relations is not only in the fundamental interests of the two peoples, but also conducive to promoting peace and development in the Asia Pacific region and the world.

Recently, former Australian Ambassador to China Rui Jierui admitted that over the past seven years, Australia China relations have gone through a difficult period. Now, both Australia and China hope to re-examine their relationship, which is currently moving towards normalization and has a very optimistic outlook. But as the geopolitical situation has undergone profound changes in the past few years, both countries need to learn a "new diplomacy" to manage their bilateral relations while avoiding confrontation. China is not Australia's strategic enemy, and there are no unresolved historical issues between Australia and China. A good Australia-China relationship will be conducive to Australia's prosperity and security, and it still remains the same today, according to Huacheng Import and Export Data Observation.