[Source/Observer Network Qi Qian] According to a report by Hong Kong's South China Morning Post on April 2, while the Trump administration in the United States was provoking trade disputes with the whole world, Australian enterprises sought to maintain good relations with their largest trading partner, China, deeming Sino-Australian trade cooperation as "top priority".

The report stated that during the interval of the Boao Forum for Asia last week, David Olson, chairman of the Australia China Business Council (ACBC), and Dino Otranto, CEO of the Australian mining giant Fortescue Metals, made the above remarks in an interview.

Olson said that Australian enterprises "hope to cooperate with China", and the renewed optimism between Australian and Chinese enterprises is driving both sides to create a trade environment conducive to "harmonious coexistence" and economic growth. He said that the relationship between Australia and China is "very important" for both parties and the entire Asian region, and it is a necessary condition that unites us.

In the past 15 years, China has always been Australia's largest trading partner. However, since mid-2017, the Turnbull government and Morrison government of Australia blindly followed the United States and began to comprehensively damage bilateral relations with China, significantly affecting normal economic and trade exchanges between the two countries. The South China Morning Post cited data indicating that China's direct investment in Australia fell to its lowest level in decades in 2023, reaching $613 million.

After the Albanese government came to power in May 2022, it made efforts to stabilize economic relations with China, leading to a "bottoming out" of Sino-Australian relations.

Talking about the trade tensions over the past few years, Olson said that these were "difficult years" for Australian enterprises, and due to the "deep freeze" in trade relations with China, Australian companies were "severely affected".

However, he then said that high-level contacts between the two countries have injected stability into the business community, and Australian companies are cautiously weighing the risks and benefits of re-entering the Chinese market. They now "clearly understand" that rapidly changing policies and uncontrollable external factors will significantly impact their operations.

Regarding Sino-US relations, Olson said that Australian enterprises currently prioritize "risk diversification and management". Because for Australian companies, the United States is Australia's security ally and "forever good friend", while China has always been Australia's largest trading partner. He added that Australia's economy heavily depends on foreign investment and exports, and when "friends become less friendly," Australia must overcome challenges.

Australia China Business Council (ACBC) Chairman David Olson Video screenshot

As a major Australian mining company and the world's fourth-largest iron ore supplier, Fortescue holds an optimistic attitude toward continued cooperation with China. CEO Otranto said that China's economic fundamentals remain strong, and demand for key minerals will "far exceed geopolitics".

Otranto said that the company has been "closely" cooperating with Chinese enterprises, striving to establish "close" resource relationships. He candidly admitted that there remains uncertainty in economic cooperation between Australia and China under the current geopolitical environment, but maintaining open trade flows "is indeed very important".

"What really matters is that we cannot return to a state of relatively isolated trade flows," Otranto said. "Because we see, especially in China, once economic liberation is achieved and the advantages of every region in the world are absorbed, overall prosperity improves. Both Australia and China are direct beneficiaries of trade openness."

Otranto also mentioned that China learned "many lessons" from the "trade war" initiated by former U.S. President Donald Trump's first term, achieving market diversification in subsequent years and no longer relying on the United States, which can mitigate the impact of uncertainties.

Before attending the Boao Forum for Asia, Otranto attended the China Development Forum held in Beijing. He said that the Chinese government promised to "seriously" support the economy, and he saw business leaders "regaining optimism." He said, "Now is the time for us to stay calm and understand that only by working together can we achieve the future."

Otranto also looked forward to the continuation of resource exports in Sino-Australian trade and its expansion to "sky" resources, such as solar and wind energy.

It is worth noting that in the interview, ACBC Chairman Olson criticized Australia's strict review system for Chinese investments, believing that it negatively impacts Australia's ability to attract investment.

Olson said that although Australian enterprises hope to see more foreign investment, including investment from China, such transactions have consistently been subject to strict scrutiny due to so-called "national security" concerns and geopolitical tensions. He frankly stated that strengthening investment reviews has slowed down other investment pursuits in Australia, such as energy transition that requires Chinese technology and capital, thereby creating "some tension".

He said that discussions among Australian enterprises have shifted toward how to develop economic ties with China in the changing global landscape. Because Australia can now engage in productive trade and investment in certain areas, while other fields, such as technology, still present challenges. "We hope and expect that Australia and China will regard new energy and green economy as the foundation of future economic relations."

Former U.S. President Trump signed the so-called "reciprocal tariff" executive order Tweet screenshot

While Australian enterprises emphasized the importance of bilateral cooperation, the Trump administration provoked trade disputes with the whole world, including Australia. On the local time of February 2, Trump announced a "reciprocal tariff" on all countries, including a 10% tariff on all Australian goods, including beef. The US "reciprocal tariff" on China reached 34%.

Recently, various sectors of Australian society have reflected on Australia's China policy and its policy toward the US.

On February 11, Andrew McKellar, president of the Australian Chamber of Commerce, said in an interview that at the time of the trade friction between the US and China, Australia needs to handle its relations with these two major economies cautiously. He emphasized, "China is our largest trading partner, and this will not change." Australia should cherish and improve its relationship with China and not place it in danger.

On March 16, Adam Bandt, leader of the Australian Greens Party, said that after Trump imposed additional tariffs on all steel and aluminum and refused to grant Australia exemption status, Canberra should withdraw from the "Australia-United Kingdom-United States Trilateral Security Partnership" (AUKUS) and explore multilateral relations with other countries affected by the tariffs. He frankly said that now, expecting Trump to provide assistance when Australia faces a security threat is "wishful thinking".

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