Security and trade in focus as Australia PM Albanese heads to China

Australian Prime Minister Anthony Albanese will depart for China on Saturday for an official visit centred on regional security concerns and strengthening economic ties.

Albanese's six-day trip will include stops in Shanghai, Beijing, and Chengdu, with a focus on expanding trade and addressing strategic challenges.

Accompanied by senior executives from leading mining companies such as Rio Tinto, BHP, and Fortescue, Albanese aims to deepen Australia’s economic relationship with China, its largest trading partner, particularly in the iron ore, agriculture, and energy sectors.

"The relationship with China means jobs in Australia, it's as simple as that," Albanese said on Friday, underlining the economic significance of the visit.

This marks Albanese’s second trip to Beijing and comes at a time of heightened geopolitical tension. Canberra has increased scrutiny of Chinese investments in critical minerals, while U.S. President Donald Trump’s sweeping tariffs have added to global uncertainty.

Meanwhile, the AUKUS security pact between Australia, the U.S., and the UK- focused on nuclear submarine cooperation is under review in Washington, raising concerns over its implications for U.S. deterrence in the region.

Australian Foreign Minister Penny Wong warned in a speech in Malaysia that China continues to assert its military presence in the region, with a growing arsenal of nuclear and conventional weapons aimed at shifting the regional power balance. She reiterated that AUKUS strengthens regional deterrence.

Richard Maude, a non-resident fellow at the Asia Society and former intelligence chief, said Albanese must strike a balance between growing economic engagement and asserting Australia’s concerns over China’s regional conduct. Direct and clear communication with Chinese leaders is essential, he added.

Recent Chinese naval drills in the Tasman Sea without prior notice and encounters between Chinese and Australian aircraft in the South China Sea have raised alarm in Canberra. While Beijing is eager to move bilateral ties forward, its proposals for cooperation in areas like artificial intelligence have received a lukewarm response from Australian officials.

China remains Australia’s biggest trading partner, accounting for AU$312 billion ($205 billion) in two-way trade last year, about a quarter of Australia’s total. Relations have improved since 2020, when China imposed informal bans on AU$20 billion ($13 billion) worth of Australian exports.

Albanese said direct engagement with Chinese leaders is vital to Australia’s national security. “We cooperate where we can and disagree where we must,” he told reporters.

Treasurer Jim Chalmers has echoed the importance of trade ties with China while recognising their complexity. Increased scrutiny of Chinese investment, particularly in critical minerals, renewable energy, and strategic infrastructure is expected to be a point of contention during talks, though Chalmers has made clear there will be no easing of review measures.

“The government understands that it’s not in Australia’s national interest to further deepen China’s dominance in the critical minerals supply chain,” Maude added.

Former Australian ambassador to China, Geoff Raby, said China may raise its interest in joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), currently chaired by Australia. He cautioned against pushing China into isolation, warning it could embolden internal factions favouring more insular policies.

Albanese will meet business leaders in Shanghai on Monday, then travel to Beijing for a leadership dialogue with Premier Li Qiang and a roundtable with major companies, before heading to Chengdu to conclude the visit.

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