Australia-China relations are on the mend

Australia-China relations appear on the mend amid reports Beijing will allow coal imports to resume for the first time since 2020.

It’s the latest positive step between the two nations after Prime Minister Anthony Albanese met with Chinese President Xi Jinping in November and Foreign Minister Penny Wong met with her counterpart in Beijing last month.

Australian coal exporters are becoming more confident it’s more than just a rumour, despite similar reports last year that China was considering resuming purchases of Australian coal coming to nothing.

The sector is encouraging China to move decisively and not risk missing out on its next round of purchase contracts.

Australia China Business Council president David Olsson said it would pave the way for more business dealings in the future.

‘Now that high-level government-to-government meetings between Australia and China have recommenced, we have a better environment in which to address trade restrictions that are in place between the two countries,’ he said.

‘The resumption of high-level meetings sends a strong, positive signal to the Chinese system and business community about Australia’s role as a business partner for China.’

Australia-China Relations Institute research principal Roc Shi said while the economic impact of the resumption of the coal trade mightn’t be huge, it would be a step forward.

‘The change is more important politically than economically… This action signals China has made the first step towards mending the relationship,’ he said.

‘Technically, it is not difficult for the Chinese government as the ban has never been officially announced… however, the implication is significant as it indicates China’s willingness to improve the bilateral relationship.’

The Department of Foreign Affairs and Trade said it was aware of reports that Chinese importers may restart buying Australian coal this year.

‘It has been the Australian government’s consistent view that the resumption of normal trade across the board between Australia and China would be in both countries’ best interests. That is true also of coal,’ the department said.

Meanwhile, any fallout from Australia imposing COVID-19 measures on travellers from China appears unlikely despite Beijing labelling them ‘disproportionate and simply unacceptable’.

Travellers from China must show they had a negative COVID test within 48 hours before flying to Australia. China has a similar measure for inbound travellers.

Mr Olsson said China and Australia should work together for mutual benefit after a tricky time during the pandemic.

‘Australia’s public health response may not have been perfect over recent years, but it has delivered good outcomes… I’m sure there are areas of public health policy both sides can share for mutual advantage,’ he said.

‘The new waves of the virus (in China) are another issue to be addressed, but for those that have an eye on the long-term and who are prudent in managing risk, China remains a compelling market and business partner.’