China Perspective

Sino-Aussie ties to improve after election

By Ai Yang (China Daily)
Updated: 2010-08-17 07:42

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Beijing - Regardless of how the Australian federal election turns out on Saturday, one thing is very likely: The next government will likely be more friendly with China.

The opposition Liberal party has promised a "reinvigorated diplomatic effort" with China, the Wall Street Journal said.

Meanwhile, the foreign minister stressed that Prime Minister Julia Gillard's proposed reduction of mining taxes from 40 percent to 30 percent has helped wipe away Chinese concerns, said Bloomberg news.

"Military, strategic and economic cooperation with China is essential," said foreign affairs spokeswoman Julie Bishop.

With less than a week to go before the election, Gillard, who took over the reins of the ruling Labor party from Kevin Rudd in June, and center-right leader Tony Abbott of the opposition Liberal party, are in a close race, a recent poll suggested.

Foreign Minister Stephen Smith was seen as siding with China on the South China Sea issue, which the United States has wanted to internationalize. Any tensions should be "resolved bilaterally", the foreign minister was quoted as saying by Radio Australia.

China is Australia's largest trading partner, with two-way trade reaching about $76 billion in 2009 - up 15 percent from a year earlier. The increase is mainly due to high demand for Australian resources like iron ore, which makes up half the exports. Chinese investment, particularly in minerals and energy, also continues to increase. Since November 2007, Australia, where one in five jobs is trade related, had approved more than 160 proposals from China for investment, Bloomberg reported.

However, relations between the two countries over the past year have not been as good. Australia's protest over the arrest and imprisonment in Shanghai of Australian mining executive Stern Hu, and Canberra's decision to grant Uygur separatist Rebiya Kadeer a visa, have damaged the friendly sentiment, despite the country at the time having a Mandarin speaking prime minister.

Su Hao, director of the Center for Asia-Pacific Region at the China Foreign Affairs University, said that Sino-Australian ties are now warming up and normalizing.

"Kevin Rudd's policy toward China was too harsh and not good for long-term development, but now both leading parties have realized the importance of the bilateral relationship and showed a willingness to improve it," he said.

"Australia is rich in resources, and China is a big energy consumer. That will bring the two very close together in the future," Su said.