The China-Australia Dialogue: From Postcards to Trades

Of course, the relationship hasn’t always been smooth sailing. But over the past few years, things have improved a lot. That gives both sides a good foundation to build on for the future. Right now, both countries are dealing with global trade tensions and trying to grow their economies in new ways. China is pushing for high-quality development, and Australia is focusing on boosting productivity. Working more closely together makes sense for both and can bring real benefits to their people. So the big question is—how to keep improving their relationship? Trust is the key. China has made it clear that it’s committed to peaceful development and regional cooperation. That kind of stability helps build stronger trust between the two countries.

Ten years ago, China and Australia signed a major trade deal that boosted their economic ties. Now, the global shift toward green energy is changing how countries do business, and China-Australia relations are changing with it. In July 2024, Australian Prime Minister Anthony Albanese visited China, and both sides agreed to work more closely on green industries. The relationship is moving beyond just trading raw materials to building green tech and low-carbon supply chains together—this is becoming a big part of their growing partnership.
Trade is still the backbone of the relationship. After the pandemic, trade between the two countries jumped to USD 211.5 billion in 2024, with China taking about 32% of Australia’s exports. But most of that trade is still in carbon-heavy goods like iron ore, coal, and gas.

As China works toward its “dual carbon” goals, that kind of trade is slowly shrinking. For example, Australia’s coking coal exports to China have dropped a lot in recent years, while lithium exports have gone up—becoming a key part of China’s clean energy supply chain. At the same time, China is sending more solar panels, wind turbines, and other green tech to Australia. Goldwind, for instance, has provided about 2 gigawatts of wind power equipment to Australia, including for the Stockyard Hill Wind Farm—the biggest wind farm in the Southern Hemisphere at 530 megawatts. Australian companies are also helping China go green. ANZ Bank, for example, helped fund Geely’s new energy vehicle R&D through a sustainable loan. The bank now offers green bonds and sustainability-linked financial products, which are tied to real climate goals. These new kinds of investments are opening up fresh ways for the two countries to work together.

Experts say that while agriculture and mining will remain strong areas of cooperation, China and Australia should also look to grow collaboration in areas like AI, healthcare, green energy, and the digital economy. That will help take their practical cooperation to the next level.

People-to-people ties are also getting stronger. China has long been Australia’s biggest source of international students and tourists, with over a million Chinese visitors coming to Australia every year. In 2024, the two countries agreed on a five-year visa deal that makes travel easier. China also started a visa-free trial for Australians. During Albanese’s visit, both sides agreed to boost cooperation in culture, sports, education, and tourism, including restarting the China-Australia Tourism Dialogue. China also said it would welcome more young Australians for exchange programs.

In today’s world, with so many global challenges like trade protectionism and unilateralism, China and Australia have agreed to support multilateralism and free trade during the recent visit. They both believe in the importance of the UN, the WTO, the G20, and APEC, and plan to keep working together on those platforms. This kind of cooperation brings more stability to the world and helps push for a fairer global order.

There’s an Australian saying: “If you stare at the sun, you won’t be troubled by the shadows.” When disagreements come up, talking things through is the way to go—not letting those differences define the whole relationship. That kind of thinking is really important for the future. Hopefully, this kind of rational approach becomes more common, helping China-Australia relations grow steadily, benefiting both peoples, and supporting peace and development in the Asia-Pacific and beyond.

By Gao Shen