Key Points
- Prime Minister Anthony Albanese has promised to raise points of contention with Chinese Premier Li Qiang.
- China imposed sanctions worth $20 billion on Australian products in 2020. The majority have since been dropped.
- Li is expected to engage in panda diplomacy with Albanese by extending the loan of Wang Wang and Fu Ni.
Australian rock lobster producers are hopeful a visit by Chinese Premier Li Qiang will result in an end to crippling sanctions on their exports.
Beijing's second-in-command arrived in Adelaide on Saturday evening, the first trip by a Chinese premier in seven years, and said China and Australia's relations were "back on track after a period of twists and turns".
"China and Australia enjoy a long history of exchanges, and the friendship between our peoples has grown ever stronger over the years.
"A more mature, stable and fruitful comprehensive strategic partnership will be a treasure shared by the people of both countries. China stands ready to work with Australia," he said.
The Chinese premier's trip is another step towards stabilisation after relations soured during the Morrison government's time in office. Source: Getty / Hector Retamal/AFP via Getty Images
Li is expected to engage in panda diplomacy with Albanese by extending the loan of Wang Wang and Fu Ni, described by Adelaide's zoo as Australia's "only breeding pair" of the globally-loved animal. The extension was due to expire at the end of the year.
The pandas have not procreated, leading to concerns about their fate.
During his stay in the South Australian capital, Li will meet winemakers on Sunday and attend a lunch hosted by Foreign Minister Penny Wong and Trade Minister Don Farrell.
He will then travel to Canberra for talks with Albanese on Monday before finishing his visit in Perth on Tuesday.
The trip is another step towards stabilisation after relations soured during the Morrison government.
Chin imposed sanctions worth $20 billion on Australian products in 2020 after the former Coalition government called for an independent inquiry into the origins of COVID-19.
China has dropped bans on exports since Labor came to office in 2022, with less than $1 billion worth of trade restrictions remaining on rock lobsters and two meatworks.
South Australian lobster fisherman Kyri Toumazos said as a result of the sanctions, the industry's revenue was between 50 to 60 per cent of its pre-pandemic levels. "The impact has been catastrophic for us," he said.
"Businesses have chosen to exit the industry. Exporters have chosen to stop trading. Traditional family businesses have had to make the difficult decision of selling their licences."
Toumazos said the industry was hoping for good news after positive signs and feedback. He said the Chinese market was the most lucrative for Australian exporters, previously importing the vast majority of lobster produced.
Australian National University associate professor Graeme Smith said the trip itself was a demonstration the Chinese were serious about getting relations back on track.
He also noted Beijing's appetite for the nation's resources including critical minerals and said the trade sanctions would likely be dropped as a "sweetener" for the visit.
"I don't see there being a great deal of headway on either side," he added.
Australian writer Yang Hengjun was and remains in a Chinese prison. Opposition assistant foreign affairs spokesperson Claire Chandler said it was critical the visit was used to discuss issues including the detention of Australians and dangerous military incidents.
"If this visit is spent talking about pandas and emphasising a reliance on exports to China, despite the ongoing coercive and aggressive behaviour of the Chinese Government in a number of areas, then that will be a propaganda victory for Beijing," she said.
Treasurer Jim Chalmers said on Saturday the government would not shy away from confronting China on important issues.
"We've made it clear on earlier occasions that we are prepared to speak up for those values and interests when that's appropriate," he said.
"We don't pretend that isn't sometimes a difficult relationship to manage but we do believe that when you engage meaningfully with ... countries like China, then the ultimate beneficiaries of that are the people of Australia."
