Australia rejects China’s requests to join trans-Pacific trade partnership

Chinese ambassador says Beijing urgently wants to start talks to join the trans-Pacific trade partnership, but there are deep concerns over its suitability.

Chinese Ambassador to Australia Xiao Qian says Beijing wants to urgently start negotiations. Picture: NCA NewsWire / Gary Ramage

The Albanese government has rebuffed Chinese requests to begin negotiations on its bid to join one of the world’s biggest free-trade agreements, as Beijing suggests bilateral relations would improve if Australia backed its admission to the bloc.

After a 2½-year campaign of economic coercion against Australia, Chinese ambassador Xiao Qian said Beijing was seeking urgent talks with the federal government on its application to join the 11-nation Comprehensive and Progressive Agree­ment for Trans-­Pacific Partnership.

“We’ve been asking for an early start, but there’s no clear confirmative response from the Australian government yet,” Mr Xiao told The Australian. “The end of the year is too late.”

Beijing must secure the assent of every CPTPP member to join the bloc but there are deep concerns among member states – particularly Australia and Japan – over its suitability for admission.

Chinese Ambassador to Australia Xiao Qian has declined to comment on China’s prospects of gaining entry to the trade agreement. Picture: NCA NewsWire

Mr Xiao refused to discuss China’s $20bn a year in punitive trade sanctions on Australian exports, and whether they would undermine the country’s efforts to secure Australia’s support for its CPTPP bid.

In a speech to the Australia China Business Council in Canberra on Wednesday, Mr Xiao said Australia and China’s bilateral trade ties would benefit from Chinese membership of the CPTPP.

“When we join the CPTPP, China will play a positive role in the economic integration and long-term prosperity of the Pacific and the world in the post-Covid era,” he said. “It will also provide (an) important opportunity for China and Australia to take our co-operation based on (our) bilateral free-trade agreement to a higher level.”

Former prime minister Scott Morrison said prior to the last election that China would have ­little chance of gaining entry to the bloc following its campaign of trade coercion against Australia.

Trade Minister Don Farrell’s office said the trade agreement had high standards for all members and potential applications.

“Any economy seeking to join the CPTPP must meet, implement and adhere to the agreement’s high standards and rules, and have a demonstrated track record of compliance with trade commitments,” his spokeswoman said.

There have been five appli­cations to join the CPTPP – from the United Kingdom, China, Taiwan, Ecuador and Costa Rica.

Australia’s Ambassador to China Graham Fletcher says the China-Australia relationship remains difficult.

South Korea, The Philippines, Thailand and Uruguay have also expressed an interest in joining

The applications will be dealt with on a first-come basis, with the British bid the current priority for assessment.

Asia Society Australia executive director for policy Richard Maude said Australia was on firm ground in fending off China’s bid.

“I would think it would be untenable for an Australian government to seriously consider Chinese accession to the CPTPP while China continues to take ­arbitrary trade action against Australia,” he said.

Australia ambassador to China Graham Fletcher told the Australia China Business Council there had been a “more measured and constructive” tone from China towards Australia since the election of the Albanese government, which has sought to end “megaphone diplomacy” with Beijing.

He said beyond meetings between the nations’ foreign affairs and defence ministers, the relationship remained a difficult one.

The ambassador, who is in Australia for mid-term consultations including talks with Foreign Minister Penny Wong, said the countries were “in something of a negotiation process to find viable parameters within which two quite different countries can interact and get along without dis­agreements that prevent that”.

Mr Fletcher said the embassy’s analysis was that Chinese growth was likely to come in well below expectations at “about 3 per cent”, compared to an average of more than 5 per recent in recent times.

He said the Australian government also believed China’s property sector would have a soft landing, contrary to what he ­described as “alarmist press reporting”.