Handling disputes with caution

The upward trend of Chinese-Australian relationship based on economic interdependence will carry on despite recent events. Upgrading the long-established bilateral friendship requires both sides to resolve disputes reasonably and display mutual understanding in economic and political spheres, especially when fundamental interests of each side are concerned.

Chinese-Australian interests converge on economic and trade relations. Industrial development makes China dependent on long-term steady and cheap supply of resources, which could be channeled via overseas acquisition and negotiations.

The road to acquisition has never been smooth largely because of non-economic suspicions of the countries involved, including Australia. This is typified by the debt-ridden Rio Tinto Group's sinking of its bid to raise cash from Aluminum Corporation of China, or Chinalco, in spring.