As the Auckland Business Chamber hosts the China Business Summit this Friday, featuring keynote addresses from Prime Minister Christopher Luxon and Chinese Ambassador Wang Xiaolong, the Pacific region grapples with a complex interplay of economic ambition and escalating security concerns.
The China Business Summit follows Luxon’s first official visit to China last month, which resulted in the signing of 11 new government-to-government arrangements. These agreements cover cooperation on climate change, cultural linkages, tourism, and a range of trade facilitation initiatives.
Meanwhile, this week’s five-day official visit to China by Australia’s Prime Minister Anthony Albanese underscores the delicate balance between fostering trade and navigating geopolitical tensions as the relationship recovers from China’s 2020-2023 sanctions.
The importance of trade to the Australian Prime Minister’s trip was underlined by the fact that Albanese was accompanied by a heavyweight delegation of prominent business leaders from Macquarie, HSBC, Fortescue Metals, BlueScope, Rio Tinto and BHP. The trip began in Shanghai with talks with China’s biggest steelmakers as Albanese looks to deepen the trade relationship which is still recovering since the lifting of Chinese sanctions imposed in 2020.
Yet, this diplomatic and trade outreach is unfolding against a backdrop of heightened military activity as Australia commences the largest-ever Exercise Talisman Sabre, involving over 35,000 personnel from 19 nations, occurring concurrently in Australia and Papua New Guinea.
The NZ Army Combat Team, made up of around 300 infantry, armour, artillery, engineers, signals and logistics personnel have just finished exercises with their Australian counterparts and have now joined the much larger Exercise Talisman Sabre.
In addition, the frigate HMNZS Te Kaha and aircraft from the No. 3 and No. 5 Squadrons of the RNZAF are also taking part in the exercise.
Simultaneously, Taiwan and the United States are conducting significant military exercises in the Pacific, designed to counter potential Chinese aggression. This convergence of economic engagement and military posturing has placed Albanese on a precarious tightrope as he attempts to navigate the legacy of past tensions while advancing Australia’s strategic and economic interests.
Albanese’s visit began in Shanghai where he addressed approximately 200 business leaders at the Fairmont Peace Hotel. The menu, featuring Australian red wine, rock lobster and red meat, was intended to symbolise the restoration of trade between the two nations following the removal of China’s coercive trade measures. These sanctions, affecting approximately A$20 billion in trade, had disrupted industries such as agriculture, fisheries and mining.
They were imposed by China as a direct response to Australia’s foreign policy under then-Prime Minister Scott Morrison, particularly his call for an independent international inquiry into the origins of COVID-19.
Those sanctions began to ease following the election of the Albanese government in May 2022, reflecting a shift in Australia’s diplomatic approach and China’s domestic considerations. All remaining sanctions were finally removed at the end of last year.
As Albanese engaged with Chinese leaders, Australia hosted Exercise Talisman Sabre, its largest-ever military exercise, commencing on July 13, with a ceremony in Sydney attended by US and Australian military officials.
Australian Defense Industry Minister Pat Conroy acknowledged the likely presence of Chinese surveillance ships, a recurring feature since 2017, noting that Australia would monitor and adjust its operations accordingly.
Albanese’s decision not to raise Chinese surveillance during his meeting with Xi reflects a pragmatic approach to avoid inflaming tensions, consistent with his government’s focus on stabilising bilateral relations. However, the exercise’s timing, alongside concurrent US and Taiwanese drills, underscores Australia’s alignment with Western security priorities.
US officials, including the Aukus-skeptic undersecretary of defence Elbridge Colby, have pressed Australia to clarify its stance on supporting a potential Taiwan conflict.
It is a question which is complicated by the recently-announced 30-day review into Aukus by the Pentagon to ensure that the defence pact is aligned with President Trump’s “America First” agenda.
Amongst the smiles and bonhomie, Albanese struck a cautious tone when discussing security issues, saying: “My government’s approach to our relationship with China is patient, is calibrated and is deliberate, and it is aimed at co-operating whenever we can, disagreeing where we must, but engaging in our national interest.”
However, at its heart, Australia is said to be suffering from “security anxiety” as China rapidly expands its nuclear and conventional warhead arsenals. The US Department of Defence estimates that since 2020, China has nearly tripled its operational nuclear arsenal to more than 600 warheads.
To add spice to the meeting between the leaders, Albanese is set to confirm that his government intends to go ahead with its plans to strip Chinese company Landbridge of its lease over the strategically important Port of Darwin, telling Xi that is it a non-negotiable election pledge.
That has led Chinese commentators to say that any forced sale of the port could trigger “countermeasures” from China, including on Australia’s A$100B iron ore trade. The potential for any such action is fast becoming the biggest threat to the stability of the Australia-China relationship.
Lawyer and writer Philip Crump explores political, legal and cultural issues facing New Zealand. Sometimes known as Thomas Cranmer. This article was published HERE
Meanwhile, this week’s five-day official visit to China by Australia’s Prime Minister Anthony Albanese underscores the delicate balance between fostering trade and navigating geopolitical tensions as the relationship recovers from China’s 2020-2023 sanctions.
The importance of trade to the Australian Prime Minister’s trip was underlined by the fact that Albanese was accompanied by a heavyweight delegation of prominent business leaders from Macquarie, HSBC, Fortescue Metals, BlueScope, Rio Tinto and BHP. The trip began in Shanghai with talks with China’s biggest steelmakers as Albanese looks to deepen the trade relationship which is still recovering since the lifting of Chinese sanctions imposed in 2020.
Yet, this diplomatic and trade outreach is unfolding against a backdrop of heightened military activity as Australia commences the largest-ever Exercise Talisman Sabre, involving over 35,000 personnel from 19 nations, occurring concurrently in Australia and Papua New Guinea.
The NZ Army Combat Team, made up of around 300 infantry, armour, artillery, engineers, signals and logistics personnel have just finished exercises with their Australian counterparts and have now joined the much larger Exercise Talisman Sabre.
In addition, the frigate HMNZS Te Kaha and aircraft from the No. 3 and No. 5 Squadrons of the RNZAF are also taking part in the exercise.
Simultaneously, Taiwan and the United States are conducting significant military exercises in the Pacific, designed to counter potential Chinese aggression. This convergence of economic engagement and military posturing has placed Albanese on a precarious tightrope as he attempts to navigate the legacy of past tensions while advancing Australia’s strategic and economic interests.
Albanese’s visit began in Shanghai where he addressed approximately 200 business leaders at the Fairmont Peace Hotel. The menu, featuring Australian red wine, rock lobster and red meat, was intended to symbolise the restoration of trade between the two nations following the removal of China’s coercive trade measures. These sanctions, affecting approximately A$20 billion in trade, had disrupted industries such as agriculture, fisheries and mining.
They were imposed by China as a direct response to Australia’s foreign policy under then-Prime Minister Scott Morrison, particularly his call for an independent international inquiry into the origins of COVID-19.
Those sanctions began to ease following the election of the Albanese government in May 2022, reflecting a shift in Australia’s diplomatic approach and China’s domestic considerations. All remaining sanctions were finally removed at the end of last year.
As Albanese engaged with Chinese leaders, Australia hosted Exercise Talisman Sabre, its largest-ever military exercise, commencing on July 13, with a ceremony in Sydney attended by US and Australian military officials.
Australian Defense Industry Minister Pat Conroy acknowledged the likely presence of Chinese surveillance ships, a recurring feature since 2017, noting that Australia would monitor and adjust its operations accordingly.
Albanese’s decision not to raise Chinese surveillance during his meeting with Xi reflects a pragmatic approach to avoid inflaming tensions, consistent with his government’s focus on stabilising bilateral relations. However, the exercise’s timing, alongside concurrent US and Taiwanese drills, underscores Australia’s alignment with Western security priorities.
US officials, including the Aukus-skeptic undersecretary of defence Elbridge Colby, have pressed Australia to clarify its stance on supporting a potential Taiwan conflict.
It is a question which is complicated by the recently-announced 30-day review into Aukus by the Pentagon to ensure that the defence pact is aligned with President Trump’s “America First” agenda.
Amongst the smiles and bonhomie, Albanese struck a cautious tone when discussing security issues, saying: “My government’s approach to our relationship with China is patient, is calibrated and is deliberate, and it is aimed at co-operating whenever we can, disagreeing where we must, but engaging in our national interest.”
However, at its heart, Australia is said to be suffering from “security anxiety” as China rapidly expands its nuclear and conventional warhead arsenals. The US Department of Defence estimates that since 2020, China has nearly tripled its operational nuclear arsenal to more than 600 warheads.
To add spice to the meeting between the leaders, Albanese is set to confirm that his government intends to go ahead with its plans to strip Chinese company Landbridge of its lease over the strategically important Port of Darwin, telling Xi that is it a non-negotiable election pledge.
That has led Chinese commentators to say that any forced sale of the port could trigger “countermeasures” from China, including on Australia’s A$100B iron ore trade. The potential for any such action is fast becoming the biggest threat to the stability of the Australia-China relationship.
Lawyer and writer Philip Crump explores political, legal and cultural issues facing New Zealand. Sometimes known as Thomas Cranmer. This article was published HERE
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