China’s ambassador to Australia makes rare remarks, outlining what’s next in bilateral relationship

In a wide-ranging press conference, China’s top diplomat in Canberra has shed light on what’s next for the bilateral relationship.

China says it would like to see joint military operations with Australia resume, saying defence co-operation is crucial to “real trust” as the two countries move beyond repairing bilateral relations and look to “consolidate and develop”.

In a rare media appearance, China’s ambassador to Australia Xiao Qian spoke for more than two hours, where he lauded the significant inroads made to the bilateral relationship between the two countries, warned against any changes to Canberra’s position on Taiwan, and voiced his hopes for how to further strengthen relations.

A senior official also demanded Australia stop meddling in Beijing’s affairs and work with China to “preserve the momentum of growing … ties” ahead of Chinese President Xi Jinping’s anticipated visit later this year.

The Albanese government holds the position of working with China “where we can, and disagreeing where we must” and has had to walk a line between improving trading relations with Beijing amid a backdrop of China’s role in escalating strategic competition in the Indo-Pacific.

Mr Xiao said Australia and China were “partners, not rivals”.

“To be honest, now the defence relationship between the two countries is an area where we really need to promote inputs and work harder on,” he said.

“This is an area that is so important to the mutual trust and confidence between two countries and two people.

“You have trust and friendship in many areas, but if you do not have trust in defence – that’s not real trust.

“We used to have in the past decades, mutual visits, joint military exercises, those kinds of things … These need to pick up again and resume again to help promote to re-establish mutual trust and confidence.

“We will look at that and make some progress.”

At a press conference on Wednesday afternoon, Anthony Albanese was asked about those comments, which the Prime Minister said he had not yet seen.

“I will just say this – my government’s position is that we’ll co-operate where we can, we will disagree where we must, and we’ll engage in our national interest,” he said.

“We won’t allow differences which are there to define our relationship. I want a constructive relationship.”

Pressed on an incident last year in which Australian naval divers from HMAS Toowoomba were injured by sonar pulses from a Chinese warship, the ambassador defended the Chinese navy and insinuated Australia had not told the whole story.

He said sonar from Chinese ships would have likely caused “immediate fatalities” if it had been behind the incident, suggesting a “third party” ship, namely one belonging to Japan, was instead perhaps to blame.

Mr Albanese said Australia “stands by” the comments it made at the time.

“We made strong representations to China about this incident, and we stand by (them),” he said.

Mr Xiao was asked when Australia could expect China to repeal the last of the tariffs on wine and lobster, Mr Xiao said he anticipated an update “in the coming months”.

Mr Albanese said his government continued to hope the ongoing tariffs would be removed “in March” after the current review wrapped up.

“We want to see the wonderful products that we have, including the seafood and wine, exported – that’s in Australia’s interest, but it’s also in China’s interests.”

Mr Albanese earlier maintained Australia had its “settings right” when it came to Taiwan, after the election on the weekend won by William Lai, labelled a dangerous “separatist” by Beijing.

“We congratulate the new leadership, the transition that has occurred through a democratic process, and we respect democratic processes,” Mr Albanese said.

“We do that while maintaining our clear bipartisan position, which is there is place for a one-China policy.

China has voiced its discontent at the outcome of the Taiwanese election, and Mr Xiao said the one-China policy was the foundation of Beijing’s relationship with Canberra.

Mr Xiao stressed the status of Taiwan – which Beijing regards as part of its territory, despite the self-governing island nation having never been ruled by the CCP – was “very sensitive” to China, and warned there was no room for compromise when it came to Australia’s position.

“But on the question of Taiwan there is no room at all for us to show flexibility or to make compromise because it involves China’s sovereignty and political integrity … There is only one China and Taiwan is a part of China,” he said.

“Over the past 51 years, each and every government in this country, whether it’s Liberal or Labor, reconfirms their commitment … We hope that the Australian government continue to be serious in their commitment to the policy and put into practice.”

Mr Xiao also said he was seeking a meeting with officials from the Department of Foreign Affairs to express his displeasure at a statement issued by the department congratulating Mr Lai’s victory.

Mr Xiao also denied China had offered Nauru financial incentives to switch allegiance from Taiwan to the Chinese Communist Party.

The small Pacific nation abandoned its recognition of Taiwan as a sovereign government after the elections on the weekend, to the delight of China.

“To be honest, we have no interest in getting involved in those things,” Mr Xiao said.

“There was no money, nothing.”

He also downplayed suggestions China was seeking to sign a security pact with Nauru.

Mr Xiao said there was room for Australia and China to “coexist” in the Indo-Pacific, saying the two countries could be “partners, instead of rivals”.

Asked about an enduring thorn in the Australia-China relationship, that of the ongoing detention of Dr Yang Hengjun – who is reportedly in poor health with a kidney cyst – Mr Xiao downplayed those reports, and said the Chinese legal system would continue to work through the case.

He said Dr Yang’s case was different to that of Cheng Lei – who returned to Australia late last year after three years in Chinese detention – and as such he “cannot expect that Dr Yang’s case would come to such a conclusion.

“We’ll see what happens next,” he said.