Aletho News

Visit of the Prime Minister of Australia to the PRC

By Vladimir Terehov – New Eastern Outlook – July 26, 2025

The official visit of the Prime Minister of Australia, Anthony Albanese, to the PRC, which took place from July 12 to 18 this year at the invitation of his Chinese counterpart Li Qiang, became a notable event in the rapidly developing process of reshaping the situation in the Indo-Pacific region.

Formally, Albanese’s visit was considered a reciprocal event following the visit to Australia by Chinese Premier Li Qiang in June last year, during the latter’s regular tour of several countries in the region. However, the current visit of the Australian Prime Minister coincided with a period of rapid acceleration in the long-anticipated transformation of the global order and therefore deserves special attention.

Geopolitical uncertainty stimulates the continuation of the China-Australia dialogue

The very fact and nature of this visit serve as yet another testament to the increasing relevance of the “strategy of balancing,” which is being adopted by all more or less significant participants in the current phase of the “Great Game.” This is especially evident in its focal point, which is rapidly shifting toward the Indo-Pacific. One of the most striking examples of this trend toward “balancing” has previously been noted in the policy of one of the leading Asian powers — Japan. To reiterate, this trend itself is a characteristic feature of the reshaping of the world order that began with the end of the Cold War, and it is inevitably accompanied by the emergence of various factors of uncertainty in global politics.

Lately, particularly significant among those factors are the ones triggered by the “tariff war,” launched on April 2 of this year by the 47th President of the United States. Although outwardly motivated by fairly understandable considerations of a “purely economic” nature, it has inevitably affected the sphere of political relations. And this includes countries with which Washington remains in military-political alliances that were once formalized through binding agreements.

Australia belongs to such countries. Along with New Zealand, it has been part of the trilateral ANZUS alliance (Australia, New Zealand, United States Security Treaty) with the U.S. since 1951. Although the alliance had shown few signs of life after the end of the Cold War — primarily due to New Zealand’s de facto boycott — the sharp escalation of the international situation that began at the end of the last decade, as well as the coming to power of the conservative National Party in Wellington in early 2023, appear to be breathing new life into the pact. Australia also participates in “politically non-binding” configurations with the United States (Quad, AUKUS).

All these alliances and configurations are aimed, directly or indirectly, at Washington’s current primary geopolitical opponent — China — which, however, has been Australia’s main trading partner for over ten years. This fact constitutes a fundamentally important departure from the Cold War era and compels Canberra to maintain constructive relations with Beijing in order to ensure the prosperity of Australia’s export-oriented economy.

Let us note that in 2023, Australia exported various goods (mainly from the mining and agricultural sectors) to China worth an enormous $220 billion. At that time, the volume of accumulated Chinese investment in the Australian economy had reached almost $90 billion.

One would think Washington should appreciate the risks Canberra takes by joining overtly anti-Chinese actions in the South China Sea or in matters related to the increasing importance of controlling the Pacific Ocean’s waters. Yet the inclusion of Australia in the list of countries targeted by the “tariff war” waged by the current U.S. President does not suggest that such assessments are present in the thinking of U.S. leadership.

By contrast, the longstanding demand for Australia to “more clearly” demonstrate its stance on the Taiwan issue was once again voiced by the current architect of U.S. defense strategy, Elbridge Colby — and precisely on the eve of Albanese’s visit. In response, during the visit itself, the Australian government issued a reply along the following lines: guided by national interests, our troops will not be sent abroad based on hypotheses regarding the situation in specific regions.

Just a few years ago, Australia’s “older brothers” nearly forced the country into AUKUS, promising to build it a fleet of nuclear-powered submarines. But now, the same Elbridge Colby is pondering the possibility of the U.S. pulling out of the project.

In short, Anthony Albanese, who resumed his post as Prime Minister of Australia following the most recent general elections, had ample reason to choose this visit as his first trip abroad — in order to “clarify the situation” in relations with a political adversary.

Some outcomes of the Australian Prime Minister’s visit to the PRC and the prospects for bilateral relations

The entire week-long visit of Albanese to the PRC can be divided into three components: “business,” “general political,” and “associated.” The first was held mainly in Shanghai with the participation of relevant ministers and business representatives; the second took place in Beijing; and the third, involving representatives of public organizations, was held in Chengdu, the capital of Sichuan Province. Regular meetings were held on several bilateral platforms, including those at the level of prime ministers and ministry heads. The high-ranking Australian guest was received by the Chinese leader, Xi Jinping.

Following the events, several documents were adopted. Of particular note is the “Joint Statement” outlining the outcomes of the latest meeting between the prime ministers. This document includes ten equally important points, of which we will briefly highlight a few here.

Point 3 reaffirms the relevance of maintaining and further developing the Comprehensive Strategic Partnership, as well as the commitment to “wisely overcome” differences. In point 4, the Australian government reiterated its adherence to the “One China” principle — essentially reaffirming the aforementioned response to U.S. demands concerning the Taiwan issue. A message to the same effect is conveyed in point 6, which emphasizes the importance of a “fair, open, and non-discriminatory business environment,” along with its chief regulator, the WTO. Point 8 refers to the intention to further develop this environment within the framework of the Free Trade Agreement concluded in 2015.

Finally, let us point out the potentially greatest challenge to the continued constructive relations between Australia and the PRC. This may turn out to be not so much the renewed U.S. focus on the 1951 alliance, but rather the development of the process of forming (still, it should be repeated, quasi-) allied relations between Australia and Japan. Even more so, since the current leadership of the Philippines is showing increasingly clear interest in joining this emerging regional alliance.

However, within the Philippines itself, resistance to anti-Chinese political trends is growing. In particular, in July of this year, a retired general questioned the usefulness of the well-known 2016 ruling by the Permanent Court of Arbitration in The Hague (in favor of the Philippines) regarding territorial disputes in the South China Sea. According to this general, the only practical result of that decision is turning the country into a “second Ukraine.”

It seems that the word “Ukraine” is beginning to acquire a symbolic meaning and now plays a role in global politics similar to that of “Baba Yaga” in children’s fairy tales — stories that are better left unread before bedtime.

Australia would also do well to avoid a prospect defined in such terms. Today, Canberra has every reason to do so, and those reasons were only strengthened during the visit of Prime Minister Anthony Albanese, as discussed here.

Vladimir Terekhov, expert on Asia-Pacific issues

July 26, 2025 - Posted by aletho | Economics, Militarism | Australia, China, Philippines, United States