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Economic conditions

Australia and China to Strengthen Ties with Visit by Premier Wen Jiabao

Strategic Insights

— 2 min read

Australian and Chinese officials are preparing for a significant escalation of their bilateral relationship, with a nuclear safeguards agreement set to be signed during a visit by Chinese Premier Wen Jiabao. The four-day visit, scheduled to begin tomorrow, will see Wen meet with Prime Minister John Howard and Australian officials to discuss a range of issues, including trade, security, and human rights. The nuclear agreement will enable China to purchase Australian uranium, while also sparking debate over potential new arrangements for Chinese exploration of Australian uranium deposits. The two countries' trade relationship, worth A$40 billion last year, is expected to grow further with the signing of a free trade agreement currently under negotiation.

Key Takeaways:

  • China's Premier Wen Jiabao is set to visit Australia for a four-day trip, focusing on a nuclear safeguards agreement and potential new arrangements for Chinese exploration of Australian uranium deposits.
  • The Australian government has stated that there will be no special treatment for China in terms of uranium exploration, with all foreign investment subject to scrutiny.
  • The trade relationship between Australia and China is worth A$40 billion, with Australia being China's second-largest trading partner.
  • A free trade agreement between the two countries is currently in negotiation, aiming to provide Australian exporters with greater access to China's 1.3 billion consumers.
  • Security will be a major focus of the visit, with China's growing influence in the Asia Pacific and military might raising concerns for the US.
  • Human rights and Taiwan issues are also expected to be discussed during the visit, with Tibetan activists and Falun Gong supporters planning to highlight their concerns.
  • The visit is an opportunity for Australia to work closely with China on shared goals, including a stable and prosperous region.

Statistics:

  • The value of the Australian-China trade relationship is A$40 billion (US$28.6 billion) for the latest year available.
  • Australia is China's second-largest trading partner.
  • China's economic growth is fueled by its massive appetite for iron ore and coal, with Western Australia being a key supplier.
  • The six-party talks aimed at defusing North Korea's nuclear ambitions have China as a key member.

Sources:

  • Asia Pulse, "Australia's evolving relationship with China will become even closer when Chinese Premier Wen Jiabao begins a four-day visit tomorrow."
  • (AAP), "Wen starts his trip in Western Australia, which is using its vast natural resources to help China satisfy its massive appetite for iron ore and coal, which is fuelling its economic growth."

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