Nourish China-Australia Relations

By Ambassador Zhang Junsai

It is clear to all that China-Australia relations have grown substantially in recent years. Leaders of the two countries have agreed to establish a broad-based, cooperative relationship of mutual benefit for the 21st century. This is not a mere matter of temporary expediency, but a strategic choice commensurate with the long-term trend of the times. It serves the fundamental interests of both countries.

We have a multi-tiered relationship which covers politics, the economy, science and technology, people-to-people exchanges and culture, among others. Visits are frequent in both directions, and meetings involving political leaders and senior government officials have boosted this growth of bilateral relations

A wide range of regular consultation mechanisms is in place, many of them every year. They include bilateral strategic dialogue, strategic defence dialogue, political consultations between the two foreign ministries, human rights dialogue, consultations on South Pacific issues, ministerial dialogue on climate change, joint ministerial economic commission, joint ministerial science and technology commission, and regular ministerial consultations on education.

One of the brightest highlights is economic relations. China stands as Australia’s number one trading partner, and Australia is China’s ninth largest trading partner. Two-way trade was almost 60 billion US dollars last year. In the first seven months of this year, despite a slight drop in Australia’s overall trade in goods, its two-way trade with China registered an impressive year-on-year rise of 27.35 per cent, to reach 45.2 billion dollars. Australia’s exports to China in this period rose by a surprising 43 per cent, to 25.5 billion dollars.

Our people-to-people contacts and cultural exchanges have also grown dynamically. Australia was among the first group of countries listed as approved destinations for outbound Chinese tourists. Last year, over 400,000 people from mainland China visited Australia and nearly 600,000 Australians visited China. China is Australia’s largest and fastest growing source of international students. More than 130,000 Chinese students are studying in this country.

The underlying reason behind this deepening relationship is the broad common interests that exist between us. They have brought real benefit to our respective economies, and improved both our peoples’ lives. As a result, we are embracing a mutually beneficial, win-win situation, in the way in which the two countries are interconnected. And sound political relations always serve as a strong guarantor of such economic cooperation.

With such enabling conditions in place, China-Australia relations provide substantial space for development, which will manifest itself in two areas.

First, future bilateral economic relations will feature diversification and sustainable development. As trade in goods continues to grow, trade in services, mutual investment, joint research and development, and sharing of technology and managerial expertise will naturally take a larger share in economic relations.

It is not surprising that investments by Chinese companies in Australia have raised attention and suspicion. Recent growth is rapid, given that merely five years ago, fewer than ten companies from China had invested in Australia. But it still does not match the strength of the trade relations between us.

China only has a small percentage of the total foreign investment that Australia has attracted, and is at an early stage compared with Australia’s investment in China. And I underline the mutually beneficial nature of investment. It never benefits just one party.

Sole dependence on trade without mutual investment will not produce a sustainable and comprehensive economic relationship. When investing in Australia, Chinese companies, state owned or private, look for a healthy, long term and reliable partnership, rather than control or monopoly. In the final analysis, China’s development brings to Australian businesses enormous opportunities.

The second area of development emerges from the extent to which China-Australia relations have transcended the merely bilateral, and have acquired regional and global importance. We share similar pursuits and concerns in wide-ranging areas. They include fighting the financial crisis, addressing climate change, deepening Asia-Pacific cooperation, reform of the international monetary system, supporting the UN’s role, non-proliferation, counter-terrorism, combatting transnational crimes, energy security, eliminating global poverty, and control of communicable diseases. As important countries in this region, we have broad space for close cooperation.

It is undeniable that we have differences. The wider our cooperation grows, the more likely it is, that differences will arise. It therefore becomes all the more necessary to address them promptly, while sticking to common interests and pushing forward bilateral relations.

The world is pluralistic. There won’t be only one model. China and Australia are different in ideologies, political systems, national conditions, stages of development, historical traditions, cultures and ways of thinking. The best solution to these differences is to treat each other as equals and with respect, accommodate each other’s concerns, and draw upon our respective strengths.

A simplistic approach is inadvisable, still less taking judgmental attitudes based on a sense of superiority or resorting to pressure tactics. While we should not dodge differences, overplaying, exaggeration and willful politicization should always be prevented. Differences should be handled objectively and calmly, and put in the right context in the bilateral relationship so that they will not obstruct its growth. I deem recent difficulties in bilateral relations, as problems arising from development. We should deal with them in a rational way, and take the initiative to overcome them.

The ancient Chinese philosopher Mencius said that even for the plant that is the hardiest and easiest to cultivate, if you let it have heat for a single day, and then expose it for ten days to the cold, it will not be able to grow. That applies to China-Australia relations too, which require nurturing and nourishment from both sides. I sincerely hope that our two countries will make joint efforts and enable our friendly cooperation to thrive to the benefit of both our peoples.