China trade’s on good vibrations for Don Farrell

Less than a month after Australia’s Defence Strategic Review, Trade Minister Don Farrell is strolling through Beijing’s Forbidden City like a carefree tourist.

Trade Minister Don Farrell greets locals at the Forbidden City. Picture: Supplied

Less than a month after Australia’s Defence Strategic Review warned of possible military conflict with China, Trade Minister Don Farrell is strolling through Beijing’s Forbidden City like a carefree tourist.

He walks, hands clasped behind his back, with a senior Chinese Commerce Ministry representative, amid throngs of local sightseers.

A seven-year-old girl wearing traditional dress approaches with her mother and shyly extends a hand.

Farrell, stooping low, tells her through an interpreter about his granddaughter, who he says would love to meet her.

It’s a world away from tensions in the bilateral relationship and the very real strategic concerns over China’s rising military might.

Hours later the minister is scheduled to meet Chinese counterpart Wang Wentao for talks to set the nations’ trade ties on a more positive track.

The Forbidden City tour is Wentao’s suggestion; a surprise gesture interpreted by Australian officials as a positive sign of Beijing’s willingness to ease its long-running trade bans on $20bn worth of Australian exports.

Australia’s Ambassador to China, Graham Fletcher, and Senator Farrell walk through an open-air mall in Chaoyang, Beijing. Picture: Supplied

The Global Times newspaper carries a front-page story to coincide with the evening meeting, saying Australia-China relations have “significantly improved and stabilised”, after “a series of hostile Australian moves against China”.

Farrell says there is no prearranged pathway to resolve the trade tensions, and goodwill must be re-established on both sides.

But he says he is optimistic, given the goodwill shown towards him.

“I think it augurs well for the future of our relationship with China,” he says.

Earlier, at an up-market Beijing supermarket, April Gourmet, Farrell beams at the amount of Australian produce on the shelves.

There are Tim Tams, Bundaberg Ginger Beer, Devondale milk, Coles-brand rice crackers and even Australian wine.

Proprietor April Zhao steers him to the dairy cabinet, where he plucks out a package of Farmers Union Greek Style Yoghurt – “My wife’s favourite!” he says.

Further down in the chilled section he inspects the imported meat on offer, finding Australian steaks shelved next to US cuts.

Senator Farrell at the Forbidden City. Picture: Supplied

“Here’s some fantastic Australian beef,” Farrell says. “We’d love to see a lot more Aussie beef on Chinese consumers’ kitchen tables, rather than this American product.”

In the liquor section, Penfolds and Jacob’s Creek wines are prominently placed alongside rival drops from Chile and New Zealand.

You’d never know Australia’s wine exports to China had plunged to just $12.4m a year from $1.3bn before Beijing imposed punishing trade bans in late 2020.

Farrell says some “very wise distributors” stocked up ahead of the sanctions so they could continue selling the sought-after Australian brands.

“So in a sense, the Chinese consumers are getting a very good product because it’s had a couple of extra years to mature,” he says.

“But of course, our problem is once that stockpile runs out, then we need to refill the supermarket shelves.

“My job is to try and convince the Chinese government to reduce those tariffs and make sure that these wonderful wines (are) continuing to be produced to be available on Chinese supermarket shelves.”