The Chinese government has regarded the meeting of the two countries Commerce ministers a major achievement for stabilizing the bilateral relations and Commerce with China is still very important. The government believes the bilateral relations has turned on a positive side and has laid a great basis for the online meeting between Don Farrell and China. The online meeting between Don Farrell and WANG Wentao has achieved great effect in commerce that has involved national interests and has laid a basis for future trade visits between two countries and the normalization of commerce and business activities.

But the government has also realized the Golden friendship Era between Australia and China and soft diplomatic Era have far gone, what is left is a pearly professional and practical international and trade principles. So, Albanese has redefined the bilateral relations.

To some extent, the government will allow differences in fields such as human rights, environment and labor caused by different systems and seeking common ground while preserving differences without endangering national security. In future meetings with China, Australia will uphold its trade principles while also seek cooperation in areas where differences exist and try to be as flexible as possible.

The government will try to persuade China to form a large-scale, equal business delegation with Australia to push the commerce relations to a better future. The government hopes to further promote trade recovery and especially hopes China would lift its ban on wine and lobster industries.

Meanwhile, when the bilateral relation eases, the government might withdraw the previously submitted arbitration application for trade disputes with China in WTO and therefore shows a nice gesture to China that Australia wants to settle trade disputes with China independently.

After the meeting of commerce ministers, industry associations in Australia hold optimistic attitude towards the recovery of trade with China. At the same time, considering that the bilateral relations are subject to international landscapes, industry associations will be discreet towards the recovery of trade with China, continue to develop a diversified export markets and avoid risks aroused by political factors.

As predicted by Iron ore industry association, Australia’s iron ore export to China in the first quarter of 2023 will continue to surge. But the association believes the Chinese government is resolute in getting rid of Australia’s iron ore, which would pose a major risk for Australia’s iron ore companies in future 5 to 10 years.

Since China’s sanction on Australian barley, Saudi Arabia has become an important replacement for Australia, but the price has decreased greatly. China’s sanctions have caused the grain industry in Australia to change its original planting structure and significantly reduced malt production. Grain Union has opposed to the government’s seeking settlement by filing to WTO all along and sought after settling disputes by improving bilateral relations between China and Australia.

Considering the abundant rainfall this year, the Union will prioritize the cultivation of beans such as rapeseed and lentils and chickpeas and lower the planting area of barley unless the bilateral relations take another turn that China needs to import a great amount of barley from Australia again. If Chinese market is reopened, the Union will significantly increase production of malted barley and feed barley. The Ministry of Agriculture in Australia estimates that the latest annual grain production will continue to be high for three consecutive years, with barley production reaching 13.5-14 million tons, and wheat production reaching 37 million tons.