INTRODUCTION


Trade Diplomacy BUILDING


ith two-way terms of trade between Australia and China at record levels, it is important for Australia to seize the moment


and ensure that the bilateral relationship is built on a foundation that will allow it to thrive well into the future. Australia cannot afford to wine and dine forever off high commodity prices in Beijing - Australia needs to deepen its engagement with China on political, economic, cultural and social levels if the relationship is to well and truly prosper. When Gough Whitlam visited Beijing as


Leader of the Opposition in 1972, his visit was derided by then Prime Minister Billy McMahon and Whitlam was accused of sympathising with communist interests and endangering Australia’s relations with its Washington allies. What McMahon and indeed Whitlam could not know was that on the same day as Whitlam’s meetings with the Chinese leadership, US Secretary of State Henry Kissinger was secretly in Beijing preparing for President Nixon’s historic visit to Maoist China. Nixon’s visit would change the Cold War


balance of power and Gough’s preemptive talks with Mao secured Australia’s position as beneficiaries of emerging changes within China’s political and economic power structures. The sod had been turned on a mutually beneficial relationship that would see the landmark Channar iron ore joint venture concluded between the two countries in 1987 – a deal which was China’s largest overseas investment at the time. Since production commenced in 1990,


over 190 million tonnes of iron ore have been extracted from the mine and a further 50 million tonnes in capacity have been added following the conclusion of an historic renegotiation between Rio Tinto and Sinosteel in 2010. This historic joint venture, coupled with


Australia’s track record of constructive cooperation with Chinese counterparts on a variety of projects, offers Australia a fascinating blueprint for a new phase of truly global cooperation. Rio Tinto’s multibillion- dollar Simandou joint venture with Chinalco is a striking example of what is possible. Existing Chinese investments in Australia are tangible models for genuine global partnerships which


12 Australia China: BEYOND TOMORROW


the bond with China


“Existing Chinese investments in Australia are tangible models for genuine global partnerships”


Chinese Vice-President Xi Jinping.


combine mining expertise and good governance practice with a commitment to mining communities and social responsibility. The Australia China Business Council has done significant work


in this area by bringing Chinese and Australian parties together to showcase their strengths to governments and indeed, the wider community. The Council’s Western Australian branch held a major event in October 2010 focusing on cooperation between Chinese companies and indigenous Australian communities. ACBC WA will also host a major event in partnership with Sundance Resources and Rio Tinto in February 2011, which will focus on cooperation between Chinese and Australian companies in Africa. Since the creation of the Channar joint venture in 1987, the


composition of the Chinese and Australian economies and the nature of the bilateral relationship have changed dramatically. China is now Australia’s largest trading partner and the second-largest economy in the world. Australia has emerged from decades of deregulation and structural reform as one of the most successful economies in the OECD. Australia is home to four of the world’s top 12 banks and the nation’s capacity to produce first-class resources has grown exponentially.


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100  |  Page 101  |  Page 102  |  Page 103  |  Page 104  |  Page 105  |  Page 106  |  Page 107  |  Page 108  |  Page 109  |  Page 110  |  Page 111  |  Page 112  |  Page 113  |  Page 114  |  Page 115  |  Page 116  |  Page 117  |  Page 118  |  Page 119  |  Page 120  |  Page 121  |  Page 122  |  Page 123  |  Page 124  |  Page 125  |  Page 126  |  Page 127  |  Page 128  |  Page 129  |  Page 130  |  Page 131  |  Page 132  |  Page 133  |  Page 134  |  Page 135  |  Page 136  |  Page 137  |  Page 138  |  Page 139  |  Page 140  |  Page 141  |  Page 142  |  Page 143  |  Page 144  |  Page 145  |  Page 146  |  Page 147  |  Page 148  |  Page 149  |  Page 150  |  Page 151  |  Page 152  |  Page 153  |  Page 154  |  Page 155  |  Page 156  |  Page 157  |  Page 158  |  Page 159  |  Page 160  |  Page 161  |  Page 162  |  Page 163  |  Page 164  |  Page 165  |  Page 166  |  Page 167  |  Page 168  |  Page 169  |  Page 170  |  Page 171  |  Page 172  |  Page 173  |  Page 174  |  Page 175  |  Page 176  |  Page 177  |  Page 178  |  Page 179  |  Page 180