BEIJING. Australia and China have pledged to maintain open dialogue and explore areas of cooperation, even amid ongoing strategic competition in the Indo-Pacific region, Australian Prime Minister Anthony Albanese said Tuesday following a high-level meeting with Chinese President Xi Jinping in Beijing.
Albanese, who is on a six-day, three-city visit to China, described the talks as part of his government’s policy to “cooperate where we can, disagree where we must,” signaling a continued shift from the strained diplomatic ties under the previous administration.
Speaking after a private lunch with Xi at the Great Hall of the People, Albanese reiterated Australia’s support for free trade and diplomacy. “Dialogue is how we advance our interests, how we manage our differences, and how we guard against misunderstanding,” he said at a press conference.
President Xi, in a statement released by Chinese state media, emphasized the importance of protecting free trade amid a “complex and turbulent” global landscape, though no direct reference was made to U.S. policies or former President Donald Trump’s sweeping trade tariffs.
While no major trade or investment agreements were signed during the visit, both sides agreed to launch a new Policy Dialogue on Steel Decarbonisation, allowing Australia further insight into China’s industrial planning. Additional agreements were signed covering tourism, customs inspections, and agriculture.
Albanese also confirmed that the two countries’ decade-old free trade agreement would undergo a review. Iron ore exports lead Australia’s trade with China and include major players like Rio Tinto, BHP, and Fortescue, whose executives joined the trip and met with Chinese steel industry officials.
A separate CEO roundtable, attended by around two dozen companies including China’s EV maker BYD, steel giant Baowu, and food group COFCO, put forward recommendations to modernize the trade agreement and promote joint research on green metals.
“First and foremost, we use fixtures such as this to send a signal that business-to-business engagement should be welcomed and encouraged,” said Bran Black, CEO of the Business Council of Australia.
Despite growing economic ties, strategic concerns persist. Albanese raised Australia’s objections to China’s naval exercises in the Tasman Sea earlier this year and the case of jailed Australian writer Yang Hengjun. He said Xi defended the exercises, stating that China conducts military drills just as Australia does.
Albanese noted that, despite ongoing strategic rivalry, both nations must continue engagement to support peace, security, and regional stability. He also acknowledged China’s criticism of Australia’s increased scrutiny of foreign investment in critical minerals and the plan to return a Chinese-leased port to Australian control.
