China has signaled its intent to maintain stable and strategic relations with Australia, even as tensions persist over military encounters in the South China Sea and growing competition for influence across the Asia-Pacific.
During talks on the sidelines of the ASEAN summit in Malaysia, Chinese Premier Li Qiang told Australian Prime Minister Anthony Albanese that bilateral relations were showing a “positive trend,” according to Xinhua News Agency. The meeting comes months after Albanese’s landmark visit to China in July aimed at restoring dialogue after years of diplomatic strain.
Why It Matters:
The meeting underscores Beijing’s push to balance strategic rivalry with economic pragmatism. Both nations remain major trading partners, even as their defence and foreign policy agendas diverge sharply.
Tensions have flared over a series of aerial incidents in the South China Sea, with Australia accusing Chinese fighter jets of “unsafe and unprofessional” maneuvers claims Beijing has dismissed, accusing Canberra of airspace intrusions.
Meanwhile, both sides are maneuvering for regional influence: China through trade and security pacts with Pacific Island nations, and Australia through new defence access agreements, such as its recent deal with Papua New Guinea.
Premier Li said China was open to cooperation in green industries, high-tech, and digital sectors, signaling an effort to anchor relations in economic opportunity rather than confrontation.
Albanese reiterated the importance of dialogue and communication, noting that “friends can have frank discussions,” after expressing concern over the latest close encounter between Australian and Chinese military aircraft.
Analysts say both sides appear intent on managing tensions rather than escalating them, given the mutual economic dependence and regional power dynamics.
What’s Next:
Canberra and Beijing are expected to pursue incremental confidence-building measures in trade and technology while maintaining cautious engagement on defence issues.
Future summits and ministerial visits will test whether this “positive trend” can translate into long-term stability amid the broader U.S.-China competition shaping the Indo-Pacific.
With information from Reuters.
