By Lewis Jackson

SYDNEY (Reuters) – Australia and China have agreed to further cooperation in investment, trade, and decarbonisation, as announced by Treasurer Jim Chalmers during his recent visit to Beijing. Chalmers commended the new stimulus packages introduced by China.

In his discussions with Zheng Shanjie, chairman of the National Development and Reform Commission (NDRC), Chalmers emphasized the positive steps being taken by Chinese authorities. This meeting lasted over three hours and covered a range of stimulus measures recently publicized.

Chalmers remarked, “We are very pleased to see the Chinese authorities announce or signal the sorts of steps that we have been hearing about this week publicly and also in our private discussions with our counterparts,” during a news conference—the first visit by an Australian treasurer in seven years.

Australia heavily relies on its iron ore exports, predominantly sold to China, with the demand fluctuations in the world’s second-largest economy significantly impacting its government revenue.

The meeting also addressed trade, investment, and cooperation on decarbonisation initiatives, notably in green steel production. The NDRC stated that conversations encompassed both countries’ growth forecasts and investment policies, with a commitment to a transparent and efficient investment framework.

Relations between Australia and China deteriorated in 2017 following accusations of Chinese interference in Australian politics, and further tensions arose from a call for an inquiry into COVID-19’s origins in 2020. However, following the election of Australia’s Labor government in 2022, China has lifted nearly all trade restrictions imposed on Australian goods.