Sino-Australian relations
Encyclopedia
Sino-Australian relations refers to the relations between the Australian Commonwealth and the People's Republic of China
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...

. The relationship between China and Australia have grown considerably over the years. Both countries are actively engaged economically, cultural and politically which spans different organizations such as APEC, East Asia Summit
East Asia Summit
The East Asia Summit is a forum held annually by leaders of, initially, 16 countries in the East Asian region. Membership will expand to 18 countries including the United States and Russia at the Sixth EAS in 2011. EAS meetings are held after annual ASEAN leaders’ meetings...

 and the G20.

Diplomatic relations between the two countries were established on 21 December 1972.

Today, China is Australia's largest trading partner.
China has one of the largest foreign reserves in the world and the financial capital which Australian mining companies has made used of to invest in energy and mineral exploration for exports to meet China's insatiable hunger for economic development, energy demands and infrastructure development.

History

Sino-Australian official diplomatic relations only began in 1972 as Australia. Since imperial times, Chinese people from mainly Guangdong
Guangdong
Guangdong is a province on the South China Sea coast of the People's Republic of China. The province was previously often written with the alternative English name Kwangtung Province...

 province in southern China have migrated to Australia since the late 1700s and boomed in the Victorian gold rush
Victorian gold rush
The Victorian gold rush was a period in the history of Victoria, Australia approximately between 1851 and the late 1860s. In 10 years the Australian population nearly tripled.- Overview :During this era Victoria dominated the world's gold output...

 era. Australia during the 18th to the early 20th century were colonies later dominion
Federation of Australia
The Federation of Australia was the process by which the six separate British self-governing colonies of New South Wales, Queensland, South Australia, Tasmania, Victoria and Western Australia formed one nation...

 of the United Kingdom and focused her attention towards Europe and America.

It was under the Whitlam Government
Whitlam Government
The Whitlam Government refers to the federal Executive Government of Australia led by Prime Minister Gough Whitlam. It was made up of members of the Australian Labor Party in the Australian Parliament from 1972 to 1975.-Background:...

 that Australia began formal diplomatic ties with China in 1972 and downgraded its relationship with the Republic of China
Republic of China
The Republic of China , commonly known as Taiwan , is a unitary sovereign state located in East Asia. Originally based in mainland China, the Republic of China currently governs the island of Taiwan , which forms over 99% of its current territory, as well as Penghu, Kinmen, Matsu and other minor...

 on Taiwan.

Australia's ties to China include those of Hong Kong
Foreign relations of Hong Kong
Hong Kong is a special administrative region of the People's Republic of China . Under the Basic Law of Hong Kong, its diplomatic relations and defence are the responsibility of the Central People's Government of the PRC. Nonetheless, Hong Kong has retained considerable autonomy in all other...

 dates back to when it was under British rule.

China and Australia were the final two bidders for the 2000 Olympics. Australia subsequently won and Sydney hosted the 2000 Olympics. Eight years later, China hosted the Beijing Olympics in 2008.

Australia began accepting Chinese students for tertiary education in 1986 in English Language Intensive Courses for Overseas Students (ELICOS). Several thousands Chinese were studying in Australia in 1987. In the aftermath of Tiananmen Square protests of 1989
Tiananmen Square protests of 1989
The Tiananmen Square protests of 1989, also known as the June Fourth Incident in Chinese , were a series of demonstrations in and near Tiananmen Square in Beijing in the People's Republic of China beginning on 15 April 1989...

, the Australian government granted protection for many Chinese students in Australia. Since then, Australia has become one of the biggest market for Chinese students for tertiary education. In early 2011, there were over 126 000 Chinese students in Australia and they make up 26 percent of the total foreign students. As of September 2011, there were 150000 Chinese students studying at Australia tertiary institutions. The Australian education export market was worth 2009/10 A$19 billion dollars.

Since the Chinese economic reforms initiated by the late Deng Xiaoping
Deng Xiaoping
Deng Xiaoping was a Chinese politician, statesman, and diplomat. As leader of the Communist Party of China, Deng was a reformer who led China towards a market economy...

, Australia has benefited from the Chinese appetite for natural resources to modernise its economy, infrastructure and meet its growing energy demands. In 2009, it is estimated the trade and investment with China brings benefits under $4000 per Australian household, in 2011, this is estimated to be A$10,500 per household per year.

Australia is one of the few countries in the world during the Global financial crisis that was not in recession and experienced economic growth due to large demand and long term strong fundamentals from China and fiscal stimulus from the Rudd Government
Rudd Government
The Rudd Government refers to the federal Executive Government of Australia of the Australian Labor Party from 2007 to 2010, led by Kevin Rudd as Prime Minister. The Rudd Government commenced on 3 December 2007, when Rudd was sworn in along with his ministry...

.

Cultural Relations

Australia has been a haven for Chinese migrants for centuries who have, in the modern day, established themselves as a significant minority group in Australian society.
There are now large numbers of Australian-born Chinese and Chinese-born migrants/Australian Citizens in the cities of Sydney, Melbourne and Brisbane
Brisbane
Brisbane is the capital and most populous city in the Australian state of Queensland and the third most populous city in Australia. Brisbane's metropolitan area has a population of over 2 million, and the South East Queensland urban conurbation, centred around Brisbane, encompasses a population of...

 with small Chinese communities in regional centers, particularly in New South Wales
New South Wales
New South Wales is a state of :Australia, located in the east of the country. It is bordered by Queensland, Victoria and South Australia to the north, south and west respectively. To the east, the state is bordered by the Tasman Sea, which forms part of the Pacific Ocean. New South Wales...

 and Victoria
Victoria (Australia)
Victoria is the second most populous state in Australia. Geographically the smallest mainland state, Victoria is bordered by New South Wales, South Australia, and Tasmania on Boundary Islet to the north, west and south respectively....

. There are also Chinatowns in every Australian capital city, including Darwin
Darwin, Northern Territory
Darwin is the capital city of the Northern Territory, Australia. Situated on the Timor Sea, Darwin has a population of 127,500, making it by far the largest and most populated city in the sparsely populated Northern Territory, but the least populous of all Australia's capital cities...

 and large, public Chinese New Year
Chinese New Year
Chinese New Year – often called Chinese Lunar New Year although it actually is lunisolar – is the most important of the traditional Chinese holidays. It is an all East and South-East-Asia celebration...

 Celebrations in Melbourne and Sydney. The former Prime Minister, Kevin Rudd
Kevin Rudd
Kevin Michael Rudd is an Australian politician who was the 26th Prime Minister of Australia from 2007 to 2010. He has been Minister for Foreign Affairs since 2010...

 also has strong connections with Chinese culture having studied Chinese at the Australian National University
Australian National University
The Australian National University is a teaching and research university located in the Australian capital, Canberra.As of 2009, the ANU employs 3,945 administrative staff who teach approximately 10,000 undergraduates, and 7,500 postgraduate students...

 in Canberra. He also speaks fluent Mandarin.

China has established many Confucius Institute
Confucius Institute
Confucius Institutes are non-profit public institutions that aim to promote Chinese language and culture, support local Chinese teaching internationally, as well as facilitating cultural exchanges. They are sometimes compared to language and culture promotion organizations such as France's...

 with Australia universities in major capital cities in Australia to foster better cultural ties.

Economic relations

China is Australia's biggest trading partner mainly due to China's strong demand for iron ore, coal and liquefied natural gas. Exports to China helped Australia escape the worst effects of the global economic meltdown over the past two years.

Many major Australian mining companies rely heavily on China and other growing big economies such as India for exports. These companies include Fortescue Metals Group
Fortescue Metals Group
Fortescue Metals Group is an Australian iron ore mining company. The company has holdings of more than 87,000 km² in the Pilbara region of Western Australia making it the largest tenement holder in the state. It is listed as FMG on the Australian Securities Exchange .In 2008, the group loaded...

, Rio Tinto, BHP Billiton and Xstrata
Xstrata
Xstrata plc is a global mining company headquartered in Zug, Switzerland and with its registered office in London, United Kingdom. It is a major producer of coal , copper, nickel, primary vanadium and zinc and the world's largest producer of ferrochrome...

 who has major Australian operations.

China exports mainly clothing, telecommunications equipment and components, computers, toys, prams and sporting equipment.

The bilateral trade between the two countries is worth $A 105 billion in 2010/2011. Australia's exports to China totaled A$64.8 billion, while China's export to Australia was worth A$41.1 billion in 2010-2011 period.

There are direct flights from major cities in China such as Beijing, Shanghai and Guangzhou to Brisbane, Melbourne and Sydney. Recently, China Southern Airlines
China Southern Airlines
China Southern Airlines is an airline headquartered in Baiyun District, Guangzhou, Guangdong Province, People's Republic of China. It is the world's sixth-largest airline measured by passengers carried, and Asia's largest airline in terms of both fleet size and passengers carried...

 have commenced scheduled commercial flights to Perth from Guangzhou in early November 2011. China Southern has its pilot training facilities in Australia for many years. They are in Jandakot and Merredin established in 1993.

They were initial fears of Chinese investment in the resource sector similar to the sentiments on Japanese investments in Australia in the 80s but that has somewhat heated up and dissipated depending on the investments which were scrutinized by the Foreign Investment Review Board and politicians.
Australia is focused on investments which have a win win situations with participation of local companies participation and jobs growth.

Political relations

Whilst economic relations between China and Australia have increased significantly to the benefit of both nations, Australia under the previous Howard Government
John Howard
John Winston Howard AC, SSI, was the 25th Prime Minister of Australia, from 11 March 1996 to 3 December 2007. He was the second-longest serving Australian Prime Minister after Sir Robert Menzies....

 has appeared reluctant to pursue closer political/military ties with China and has maintained the role of George W. Bush
George W. Bush
George Walker Bush is an American politician who served as the 43rd President of the United States, from 2001 to 2009. Before that, he was the 46th Governor of Texas, having served from 1995 to 2000....

 controversially dubbed "America's Deputy" in the Asia-Pacific Region.

China is emerging as a political and economic power in the Asia Pacific region which is traditionally anchored by the United States. Australia is a Middle power
Middle power
Middle power is a term used in the field of international relations to describe states that are not superpowers or great powers, but still have large or moderate influence and international recognition. There is no single specific definition of which countries are middle powers.-Definition:There is...

 country like many Asian countries which have security arrangements with the United States but growing economic ties with China. The challenge for middle power countries is to work with the strategic rivalry between China and the United States for peace and prosperity in the Asia Pacific region.

Howard Government

When, on 15 June 2007, the Prime Minister John Howard
John Howard
John Winston Howard AC, SSI, was the 25th Prime Minister of Australia, from 11 March 1996 to 3 December 2007. He was the second-longest serving Australian Prime Minister after Sir Robert Menzies....

 received the Dalai Lama, China protested, with official critics.

Rudd Government

The election of Kevin Rudd
Kevin Rudd
Kevin Michael Rudd is an Australian politician who was the 26th Prime Minister of Australia from 2007 to 2010. He has been Minister for Foreign Affairs since 2010...

 as Prime Minister of Australia was seen as favorable to Sino-Australian relations, notably in view of the fact that he was the first Australian Prime Minister to speak fluent Mandarin, and that closer engagement with Asia was one of the "Three Pillars" of his foreign policy.

In 2004, Rudd, who at the time was Shadow Minister for Foreign Affairs, had delivered a speech in Beijing entitled "Australia and China: A Strong and Stable Partnership for the 21st Century".

In February 2008, Australia reportedly "chastised Taiwan for its renewed push for independence" and "reiterated its support for a one-China policy". In April, however, Rudd addressed Chinese students at Peking University
Peking University
Peking University , colloquially known in Chinese as Beida , is a major research university located in Beijing, China, and a member of the C9 League. It is the first established modern national university of China. It was founded as Imperial University of Peking in 1898 as a replacement of the...

, and, speaking in Mandarin
Standard Mandarin
Standard Chinese or Modern Standard Chinese, also known as Mandarin or Putonghua, is the official language of the People's Republic of China and Republic of China , and is one of the four official languages of Singapore....

, referred to "significant human rights problems in Tibet". Rudd also raised the issue in talks with Chinese Premier
Premier of the People's Republic of China
The Premier of the State Council of the People's Republic of China , sometimes also referred to as the "Prime Minister" informally, is the Leader of the State Council of the People's Republic of China , who is the head of government and holds the highest-ranking of the Civil service of the...

 Wen Jiabao
Wen Jiabao
Wen Jiabao is the sixth and current Premier and Party secretary of the State Council of the People's Republic of China, serving as China's head of government and leading its cabinet. In his capacity as Premier, Wen is regarded as the leading figure behind China's economic policy...

, in a context of "simmering diplomatic tension" according to TV3
TV3 (New Zealand)
TV3 is a New Zealand commercial television network, owned by MediaWorks New Zealand. Launched on 26 November 1989, the first private television network in New Zealand...

.

Prime Minister Rudd received lukewarm response from China about his Zhengyou
Zhengyou
Zhengyou is a term sometimes used by several countries such as Australia and India to describe their diplomatic engagement with China. The phrase, meaning "true friend" in one of the Chinese dialects, is meant to encompass building a broad-based relationship with an explicit and specific...

 terminology used to describe Australia's relationship with China.

In July 2009, following the arrest
Rio Tinto espionage case
The Rio Tinto espionage case began with the arrest on 5 July 2009, of four staff in the Shanghai office of the Rio Tinto Group, in the People's Republic of China, who were subsequently accused of bribery and espionage. Two days later, an import executive of the Shougang Group and Laigang Group was...

 in China of Australian mining executive Stern Hu
Stern Hu
Stern Hu is an Australian businessman of Chinese origin. He was formerly an executive of Rio Tinto mining group in Shanghai, China prior to his trial. He graduated from Peking University before obtaining Australian citizenship in 1994.- Arrest in China :...

, accused of spying, Rudd intervened to "remind our Chinese friends that China [...] has significant economic interests at stake in its relationship with Australia and with its other commercial partners around the world". Later in August 2009, the PRC government protested against the Australian government after Rebiya Kadeer
Rebiya Kadeer
Rebiya Kadeer is a prominent Uyghur businesswoman and political activist from the northwest region of Xinjiang Autonomus Region of the People's Republic of China...

 was granted a visa to visit Australia to attend the Melbourne International Film Festival
Melbourne International Film Festival
The Melbourne International Film Festival is an acclaimed annual film festival held over three weeks in Melbourne, Australia. It was founded in 1951, making it one of the oldest in the World....

. Along with the Rio Tinto espionage case
Rio Tinto espionage case
The Rio Tinto espionage case began with the arrest on 5 July 2009, of four staff in the Shanghai office of the Rio Tinto Group, in the People's Republic of China, who were subsequently accused of bribery and espionage. Two days later, an import executive of the Shougang Group and Laigang Group was...

 and the failed bid for Chinalco to purchase a higher stake in the Rio Tinto Group
Rio Tinto Group
The Rio Tinto Group is a diversified, British-Australian, multinational mining and resources group with headquarters in London and Melbourne. The company was founded in 1873, when a multinational consortium of investors purchased a mine complex on the Rio Tinto river, in Huelva, Spain from the...

, such events are generally considered as lowest ever points in Sino-Australian relations for the past few years. China has also effectively banned visits by senior Australian officials, in protest against the events in question.

Despite the souring of relations within 2009, on 19 August 2009, Chinese petroleum company PetroChina
PetroChina
PetroChina Company Limited is a Chinese oil company and is the listed arm of state-owned China National Petroleum Corporation , headquartered in Dongcheng District, Beijing. It is China's biggest oil producer, and was the world's most valuable company by market value as of September 28th 2010...

 signed an A$50 billion deal with ExxonMobil
ExxonMobil
Exxon Mobil Corporation or ExxonMobil, is an American multinational oil and gas corporation. It is a direct descendant of John D. Rockefeller's Standard Oil company, and was formed on November 30, 1999, by the merger of Exxon and Mobil. Its headquarters are in Irving, Texas...

 to purchase liquefied natural gas from the Gorgon field in Western Australia, considered the largest contract ever signed between China and Australia, which ensures China a steady supply of LPG fuel for 20 years, and also forms as China's largest supply of relatively "clean energy".

Gillard Government

The Gillard government has maintained strong economic ties with China through agreements to explore clean energy and to make sure Australia remains a longstanding and reliable supplier of energy and natural resources. Australia under Prime Minister Gillard has stated will continue positive and constructive engagement with China but maintaining security ties with the United States based on shared values.

Gillard government's action to station US troops in Australia has been strongly criticised and viewed with suspicion by China and Indonesia as the US is trying to encircle China and questioned why it would want to alienate its largest trading partner.

Diplomatic offices

The Chinese embassy is located in Canberra
Canberra
Canberra is the capital city of Australia. With a population of over 345,000, it is Australia's largest inland city and the eighth-largest city overall. The city is located at the northern end of the Australian Capital Territory , south-west of Sydney, and north-east of Melbourne...

, ACT in Australia. There are consular offices in major cities such as Sydney, Melbourne, Brisbane and Perth.

The Australian embassy is located in Beijing
Beijing
Beijing , also known as Peking , is the capital of the People's Republic of China and one of the most populous cities in the world, with a population of 19,612,368 as of 2010. The city is the country's political, cultural, and educational center, and home to the headquarters for most of China's...

. Australia also have consular offices in major cities such as Shanghai
Shanghai
Shanghai is the largest city by population in China and the largest city proper in the world. It is one of the four province-level municipalities in the People's Republic of China, with a total population of over 23 million as of 2010...

 and Guangzhou
Guangzhou
Guangzhou , known historically as Canton or Kwangchow, is the capital and largest city of the Guangdong province in the People's Republic of China. Located in southern China on the Pearl River, about north-northwest of Hong Kong, Guangzhou is a key national transportation hub and trading port...

.

Further reading


External links


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