Beijing can 'notify' Chinese firms to step up trade with Australia, ambassador says

SYDNEY - China’s ambassador to Australia said on Tuesday that Beijing could “notify” Chinese companies to encourage trade between the two countries as bilateral ties improved.

Ambassador Xiao Qian also said Australian and Chinese negotiators in Geneva were discussing whether Australia could drop complaints at the World Trade Organisation on Chinese tariffs on wine and barley and resolve them bilaterally, which he said would be “a good idea”.

“As we improve our relationship, as we develop our relationship, we’ll come back to a normal kind of relationship,” Xiao told reporters following a speech in Canberra.

Diplomatic relations between Canberra and Beijing are easing after several years of strain, and the Australian government is watching to see if China, its largest trading partner, lifts unofficial trade blockages on a dozen Australian exports.

China’s state planner this week allowed three central government-backed utilities and its top steelmaker to resume coal imports from Australia, lifting an unofficial ban in place since 2020 after Canberra called for an investigation into Covid-19‘s origins.

Australia has two complaints at the World Trade Organisation against dumping tariffs imposed by China on Australian wine and barley.

On other products, the resumption of trade depended on decisions by Chinese companies, although the Chinese government would “remind” companies through statements and notifications, Mr Xiao said.

“We did that when we had a bad relationship. We have to tell our companies we are having some problems with this country politically, you have to be careful... and when we have an improvement in relations we also notify our companies and the people in China,” he said.

Ambassador Xiao on Tuesday also said Australia should remember Japan’s war crimes during World War II before cosying up to the regional power.

Australia’s centre-left government has recently signed a new security pact with China’s regional rival Japan, seen as an attempt to limit Beijing’s muscle in the Pacific region.

Mr Xiao said Canberra should be cautious about trusting Japan, given its attacks on Australia during World War II.

“During the Second World War Japan invaded Australia, bombed Darwin, killed Australians and shot Australian (prisoners of war),” he told reporters.

“Be careful about what might happen in the future. When someone threatens you, he might threaten you again. China has been your friend.”

Mr Xiao had bristled when asked about Japan’s ambassador to Australia, who told The Australian newspaper that there was a need to remain “vigilant” of China. REUTERS, AFP