Andrews and Morrison part ways again over China trade

Victoria has again parted with the federal government on China policy, this time over President Xi Jinping’s marquee trade event.

Victorian Premier Daniel Andrews in Tiananmen Square during a past visit to China. Picture: Twitter

Victoria has again parted with the federal government on China policy, this time over President Xi Jinping’s marquee trade event.

The federal government has no physical presence at the China International Import Expo, which opened to the public on Friday.

Premier Daniel Andrews’ government has taken a different ­approach, covering the costs of dozens of Victorian firms exhibiting at the most important annual trade event in China.

“Our presence at the Expo is helping connect Victorian businesses to key markets to secure new contracts and grow jobs,” a Victorian government spokesman said.

The Victorian-branded outpost – erected six months after the federal government tore up the state’s Belt and Road agreements with China – is part of a renewed China trade push by the Andrews government.

It comes weeks after the opening of a new state government-funded outpost in Shanghai called Vic House.

Trade Minister Dan Tehan declined to comment on Victoria’s different approach.

But in a briefing with China-­focused Australian businesses on Friday, Mr Tehan said the federal government was leading a “whole of nation” approach with its ­prickly trading partner.

“Team Australia – Australian government (and) Australian business working together – has never ever been more important,” he said.

Chinese customs also stopped the clearance of wine from scores of sellers booked to display at the 2020 trade show.

Just over 100 Australian companies are exhibiting, down from 180 in 2020, according to numbers provided to The Weekend Australian by Austrade.

The Morrison government continues to encourage businesses to diversify from our biggest trading partner after Mr Xi’s administration blocked Australian exports to China previously worth more than $20bn a year.

“We welcome businesses considering alternative markets and a diversified consumer base to protect themselves against shifting demand over a protracted period,” Mr Tehan told a separate audience of Taiwan-focused Australian businesses on Thursday.

Much of Beijing’s black-listing – most of which has never been made official – occurred in the days leading up to last year’s trade show, which has become a key event for China’s supreme leader since it began in 2018.

Days before last year’s show, more than $2m worth of live Australian lobsters were held up at Shanghai Airport. Most of the animals died after a prolonged intervention by China’s Customs officials.

Chinese Customs also stopped the clearance of wine from scores of sellers booked to display at the trade show. Weeks later, Mr Xi’s Commerce Ministry decimated Australia’s wine trade to China with the imposition of a more than 200 per cent tariff.

While the Australian government has decided against a physical exhibition, government and trade officials are ­assisting Australian firms such as Blackmores, Woolworths and Swisse, which have paid to attend.

Australia’s ambassador Graham Fletcher will not be in ­attendance because of a wave of border closures following a Covid outbreak.

In less Covid-constrained times, the trade show allowed businesses to do deals with new customers, as well as providing a politically useful backdrop to recommit to existing partnerships.

It also allows exhibitors to meet in person with China’s customs officials, the same government officials who have terrorised many Australian exporters for more than 18 months.