December 31, 2022

How can Australia and China mend ties?

By: Azhar Azam

More than 50 years ago, Gough Whitlam, a powerful politician in Australia, comprehended China’s importance and advocated establishing diplomatic relations with the government of one of the world’s largest countries. Within weeks of ending the 23-year conservative rule and becoming the Australian prime minister, he recalled ambassador from Taiwan and recognized China on 21-December-1972.

Signing of Joint Communiqué formed the basis for the formation of the Beijing-Canberra formal diplomatic ties. It explicitly stated: “The two Governments agree to develop diplomatic relations, friendship and cooperation between the two countries on the basis of the principles of mutual respect for sovereignty and territorial integrity, mutual non-aggression, non-interference in each other’s internal affairs, equality and mutual benefit and peaceful co-existence.”

In the coming decades, relations blossomed and unleashed growth opportunities to Australia, immunizing it from the shocks of the 1997 Asian and 2008 global financial crises. China’s urbanization, growth in manufacturing and infrastructure investments in 1970s followed by rapid industrialization, especially in the mid 2000s, also helped to accelerate the Australian economic expansion.

Chinese President Xi Jinping’s address in 2014 to the Australian parliament and characterization of the bilateral relationship as "comprehensive strategic partnership” by the two leaderships described how politically close the two countries were. Canberra continues to believe the relationship’s based on “strong economic and trade complementarities and longstanding community and cultural links.”

Moved by US perception of the China threat, Australia’s sense of insecurity is still relatively a late phenomenon; two countries had no outstanding grievances by 2017. The relations ebbed under the Morrison government after Australia worked in collaboration with America to publicly bar Huawei from building its 5G network on national security grounds.

The Kiwi government’s criticism of China over Hong Kong and Xinjiang, termination of Victoria's agreement with Beijing on the Belt and Road Initiative through the Commonwealth veto legislation, racist incidents against Chinese students and tourists in Australia and confrontational pitch precipitated the downfall.

While Morrison danced on the US tune by “siding with the US anti-China campaign” and risked Australia’s trade surplus and the Australians’ well-being , Canberra’s allies including Washington captured its market with America protecting its exporters through the phase-one trade deal with China. His offensive posture cost him a defeat in the election, according to a domestic review that also found the concerns of the Chinese community as “genuine.”

Nevertheless, the advent of Anthony Albanese as Australia’s prime minister and meetings between the Chinese and Australian defense and foreign ministers indicated a “critical first step” to thaw the ice, stabilize the relationship and start over again. Beijing’s inclination to attune bilateral ties, citing Canberra’s “irresponsible” statement, offered prospects to rescue the crucial Sino-Kiwi relationship.

The meeting between Xi and Albanese on the sidelines of the G20 summit rekindled more hope. The Labor Party leader reminisced about the Whitlam era when he sought to guide the relationship “equality, mutual respect and peaceful coexistence.” As Albanese emphasized all these principles were important, he didn’t support the core element of the 1972 diplomatic deal, non-intervention in each other’s domestic matters, which might muddle his stabilization strategy.

Stabilization” of relations is the latest fad of the Albanese government vis-à-vis China. The country’s Defense Minister Richard Marles and Foreign Minister Penny Wong have been consistently using the term (stabilise) to put the relations back on track or build on the “recent (Xi-Albanese) constructive meeting.”

But a fact-based assessment suggests it will not be that easy to patch things up unless Australia demonstrates some sort of respect to China’s sovereignty. As long as Australia drags on the fait accomplis and keeps denouncing China, it will be much harder to “navigate” differences and strengthen bilateral relationship pursuant to the comprehensive strategic partnership.

Former Kiwi ambassador to Beijing David Ambrose warns Washington can’t be objective about Beijing and that Australia and China are “natural partners.” Others argue the AUKUS will trick Australia of an independent defense policy and trigger a “dramatic escalation” of the trend of Canberra as a “sub-imperial power.”

Commencement or resumption of dialogue including on trade, consular affairs, climate change and defense is a welcome sign; Australia needs to tread carefully on sensitive issues that China believes are critical to its national security. In order to stabilize and rejuvenate relations, Canberra should chart its own path and shy away from piling on with Washington in slating Beijing.

After returning from Beijing, Wong said her administration had a “lot of work to do” but she was happy the communication channels were open to reconsolidate and “stabilize” the relationship. Albanese himself on Friday told Australians he’s engaging China “constructively” without a “loud hailer,” in a “marked difference” to the previous government.

Prioritization of the economic interests is Albanese' key goal and he knows this objective can't be achieved if he continues challenging China at the whim of the US. Labor leader seeks to normalize relations by seeking China to lift economic sanctions first; unfortunately, he doesn't have the leverage Donald Trump had.

For a long-term mutually-beneficial relationship, Australia will have to get back to the principles of the 1972 communiqué, increase high-level engagement, respect Chinese national interests and promote economic, education, cultural, investment and technology cooperation to benefit businesses, tourist operators and people in the country.