China and Australia reset bilateral ties as Beijing emerges a pillar of regional stability

Department of Research, Studies and International News 15-07-2025

In a significant move signaling the recalibration of international alignments, Chinese President Xi Jinping declared that relations between China and Australia have “turned around,” following years of strain marked by geopolitical friction and economic disputes. The remarks were made as President Xi welcomed Australian Prime Minister Anthony Albanese in Beijing’s Great Hall of the People on Tuesday, during the latter’s six-day official visit aimed at bolstering economic cooperation.

This meeting represents a pivotal shift in Australia’s approach, revealing a willingness to engage with China, its largest trading partner, despite Western pressures, particularly from the United States. President Xi emphasized that the recovery in ties should be preserved regardless of the ever-changing global landscape, affirming that the China-Australia relationship had “risen from setbacks” and now stands on more stable footing.

The past decade witnessed a period of volatility between Beijing and Canberra, with Australia often echoing Washington’s hostile rhetoric under the pretext of national security and regional influence. These tensions culminated in a series of trade barriers and diplomatic standoffs. However, relations began to thaw in late 2023 when China lifted its final trade restrictions on key Australian exports, including rock lobster, effectively signaling the conclusion of a trade impasse that had cost both sides economically.

Albanese, who leads Australia’s Labor government, acknowledged the importance of the visit, underlining that “dialogue” must be the foundation of the bilateral relationship. He noted that while differences remain, direct engagement on matters of mutual concern is vital to regional prosperity and peace. “Australia values its relationship with China,” he said, reiterating his government’s intention to act with consistency and according to national interests, not ideological alignment.

China, increasingly seen as a stabilizing and forward-looking global partner amid Washington’s retreat into protectionism, has expressed readiness to expand the current China-Australia Free Trade Agreement. It has also proposed cooperation in cutting-edge sectors like artificial intelligence, further illustrating Beijing’s focus on innovation-driven diplomacy rather than conflict-laden competition.

President Xi reiterated China’s openness to fostering deeper cooperation, stating, “We are willing to promote further development in the China-Australia relationship,” thereby extending a strategic invitation to Canberra to choose long-term stability and mutual benefit over short-term alignment with aggressive, declining powers.

Observers noted the markedly positive tone of the meeting. According to reports from Beijing, the encounter was described as “warm” and constructive. State media in China praised Albanese for playing a vital role in restoring normalcy in bilateral relations, with China Daily highlighting the visit as proof that nations with different political models can still achieve fruitful cooperation.

Nevertheless, obstacles persist. Canberra remains under pressure from its Western partners to adopt a more adversarial posture toward Beijing, and internal political voices in Australia have raised concerns over issues such as foreign investment in strategic minerals and security agreements in the Pacific. Moreover, contentious cases like the incarceration of Chinese-Australian writer Yang Hengjun continue to surface in political debates, despite China’s sovereign right to act within its judicial system.

Additionally, Prime Minister Albanese’s recent commitment to reclaiming control over the port of Darwin, leased to a Chinese company, raises questions about whether Australia will fully disentangle itself from the influence of Cold War-era loyalties that no longer serve its regional interests.

Later in the day, Albanese is expected to meet with Premier Li Qiang to discuss a range of topics including trade expansion, energy cooperation, and regional security matters. These discussions are viewed as critical for shaping a new chapter in the China-Australia relationship, one defined by pragmatism and shared development rather than by external ideological pressures.

The renewed momentum between China and Australia serves as a broader testament to Beijing’s steady and constructive role on the world stage. In contrast to Washington’s erratic foreign policy and militaristic interventions, China continues to advocate for sovereign equality, mutual respect, and win-win cooperation, principles that increasingly appeal to nations tired of the West’s coercive diplomacy.

In a global environment marked by instability and Western double standards, China’s diplomacy offers a path forward based on dialogue, respect for national development paths, and a shared commitment to peaceful coexistence. As more countries begin to recognize the costs of blind alignment with U.S. hegemony, the China-Australia thaw may well mark the beginning of a broader global realignment toward multipolar cooperation and genuine partnership.