Chinese Foreign Minister Qin Gang to visit as Beijing thaw gathers steam

Trade Minister Don Farrell says Chinese Foreign Minister Qin Gang will visit Australia soon, in a fresh signal of improved relations between the countries.

The Baosteel steel smelter in Shanghai, China.

Trade Minister Don Farrell says Chinese Foreign Minister Qin Gang will visit Australia soon, in a fresh signal of improved relations between the countries and the potential lifting of Beijing’s trade bans on Australian exports.

Senator Farrell told his Chinese counterpart Wang Wentao in a meeting late on Friday that he had learned of the foreign minister’s upcoming visit and asked Mr Wang whether he too would travel to Australia.

“There is a good pattern there. The foreign minister is coming and so … can I formally invite you to come to Australia and in particular to come to Adelaide?” the, South Australian senator said.

Don Farrell arrives in China and is greeted by Australian Ambassador to China Graham Fletcher

His comments followed a story in the South China Morning Post revealing Mr Qin’s expected July trip, which is yet to be formally announced by Beijing.

Mr Wang told Senator Farrell that China and Australia were both “important countries in the Indo-Pacific”, and it was “in our fundamental interests” to work together.

Mr Wang said China had “noted” Australia’s concerns over trade issues, and improving the bilateral partnership would require a “joint effort”. He said China was also concerned its businesses and products “be treated fairly and justly” by Australia.

“We do not have fundamental conflicts of interest,” Mr Wang said. “We need to see our differences and divergence in perspective, (and) improve and maintain our bilateral economic relations.”

China slapped punishing tariffs on Australian exports, including barley, beef, wine, lobster, coal and timber, after the Morrison government called for an inquiry into the origins of Covid-19.

China recently agreed to review the barley bans in response to the suspension of a World Trade Organisation challenge by Australia, setting a course for the sanctions on the commodity to be lifted, together with those on wine.

Friday’s meeting followed a proposal by the world’s largest steel-maker, China Baowu Group, to invest billions in building a new green steel mill in Western Australia.

The company’s chairman, Chen Dorong, told Senator Farrell that the company needed to decarbonise its operations and was eyeing Australia’s abundant clean energy to support the transformation but other locations such as West Africa, South America and Saudi Arabia were also being considered for the plant.

Mr Chen said the company hoped to choose Australia for the investment, which was “indeed an urgent test”.

Senator Farrell said earlier that Australia had no expectations for an immediate fix to the long-­running trade dispute: “The issues didn’t occur overnight, and they’re not going to be resolved overnight.”

China’s ambassador to Australia Xiang Qian told state-owned mouthpiece The Global Times the election of the Albanese government had greatly improved ties between the countries.

“At present, China-Australia relations are showing a momentum of stable and sound development, and bilateral economic and trade relations are facing an important window,” he said.

In an editorial, however, the newspaper warned against Australia’s “following of the US to see China as a security threat”.

“This is the root cause why China-Australia relations encountered difficulties,” it said.

Australia-China Chamber of Commerce chair Vaughn Barber said the thaw in bilateral relations meant Australian businesses were now “pushing on an open door” in China.

He said the next step – the removal of trade blockages – would send a “very positive signal” to all Australian exporters, not only those directly affected by tariffs.