Trade ‘olive branch’ held out to China ahead of G20 meeting

Albanese government suggests ‘compromise situation’ could restore normal trading ties as Beijing calls for ‘concrete actions’.

High-level diplomatic signalling by both sides has continued ahead of the first encounter between Australian Foreign Minister Penny Wong and her Chinese counterpart in Bali at a two-day G20 meeting that begins on Thursday evening. Picture: istock

The Albanese government has suggested a “compromise situation” could restore normal trading ties as Beijing said “concrete actions” were needed to improve the fraught bilateral relationship.

High-level diplomatic signalling by both sides continued ahead of the first encounter between Australian Foreign Minister Penny Wong and her Chinese counterpart in Bali at a two-day G20 meeting that begins on Thursday evening.

Speaking in Singapore late on Wednesday, Senator Wong indicated a formal meeting with China’s Foreign Minister Wang Yi at the summit remained “very fluid”.

“Obviously these arrangements are very fluid but that stance of being open to engagement, that willingness to engage, remains our position, including at the G20,” she said.

“We believe that both sides have an interest in stabilising the relationship.

“We do maintain the concern, which we have raised about the existence and continuation of coercive trade and economic measures against Australia.”

Senator Wong said international rules around trade were needed to make sure “power and size ought not resolve differences … otherwise people’s sovereignty is impinged upon”.

Her comments came after Trade Minister Don Farrell said there could be an “alternative way” to the WTO process to deal with Canberra’s continuing trade dispute with Beijing.

“Obviously if the opportunity arises to have a different set of discussions, whereby we can nut out a compromise situation, then I’d be fully supportive of going down that track,” Senator Farrell told Guardian Australia.

“I’ve issued the invitation, I’ve held out the olive branch.

“There’s not much more I can do until we find out if that’s going to be reciprocated on the Chinese side.”

Senator Farrell last month had his request to meet his Chinese counterpart on the sidelines of a WTO summit in Geneva rebuffed.

Foreign Minister Penny Wong. Picture: DFAT/Sarah Friend

Beijing has also been busy posturing ahead of the first in-person encounter between the two countries’ foreign ministers since November 2019.

A Chinese foreign ministry spokesman on Tuesday evening said Canberra needed to work with Beijing in a “rational and positive light” and urged the new government to put “differences aside”.

“There is no ‘autopilot’ mode in improving China-Australia relations,” Chinese foreign ministry spokesman Zhao Lijian said. “A reset requires concrete actions.”

Beijing has sent some modestly positive signals to Canberra since the new government’s election.

But an array of structural issues remain, including the ongoing detention of two Australians in China, sanctions on exports previously worth more than $20bn a year, tension over China’s assertive behaviour in the Pacific and unease about its diplomatic support of Russia’s invasion of Ukraine.

In an unusually positive report, party-state masthead Beijing Daily on Tuesday evening noted an appearance by Australia’s ambassador in China, Graham Fletcher, at a conference this week at Tsinghua University in Beijing.

That followed a meeting last week between Mr Fletcher and Chinese Vice-Minister of Foreign Affairs Xie Feng.

But an unnamed Chinese scholar quoted in Beijing Daily article said it was necessary to have “pragmatic expectations” about the relationship.

“Australia is America’s most loyal ally,” the unnamed scholar was quoted as saying.

“The turnaround in China-Australia relations requires the joint efforts of the two countries to meet each other halfway.”

Australian-based analysts have also cautioned against talk of a “reset” in the relationship.

“The process of stabilising relations is going to be a long and gradual one,” said Richard Maude, the executive director of policy at Asia Society Australia. “Neither side is wanting to rush the pace and neither side has much room to compromise, so it’s going to be an evolutionary process,” he said.

Ahead of the Bali summit, friends and family of imprisoned Australians Cheng Lei and Dr Yang Hengjun called for their plight to be “top of the agenda” of any sideline meeting.

Speaking in Singapore before travelling to Bali, Foreign Minister Wong said the Australian government would continue to publicly call for “their treatment to reflect the appropriate standards and for their release”.

“And that’s a bipartisan position,” Senator Wong said.