Key Takeaways from Premier Li’s Visit to Australia: Implications for Businesses in the Australia-China Landscape

Premier Li Qiang’s Visit to Australia: A Milestone in Australia-China Relations

In a significant development for Australia-China relations, Premier Li Qiang made a historic visit to Australia in June 2024, marking the first time in seven years that a Chinese premier has visited the country. Premier Li’s visit has far-reaching implications for businesses operating in the Australia-China landscape, with key diplomatic, economic, and trade agreements being discussed and signed during his trip.

The primary focus of Premier Li’s visit was the stabilisation of bilateral relations between Australia and China. Both countries have expressed a desire to improve economic ties while acknowledging the ongoing diplomatic and strategic tensions that exist. Australian Prime Minister Anthony Albanese’s message of cooperation where possible, disagreement where necessary, and prioritising national interests sets the tone for future engagements between the two nations.

During Premier Li’s visit, several bilateral agreements were signed to strengthen economic cooperation, advance discussions on economic policy issues, resume cooperation on climate change, and encourage collaboration in education, research, arts, and cultural sectors. These agreements signal a positive step towards enhancing cross-border business opportunities between Australia and China.

One of the key announcements made during Premier Li’s visit was the introduction of visa-free travel to China for Australians for up to 15 days, effective from July 1, 2024. This policy, along with reciprocal access to five-year multiple entry visas, aims to facilitate easier travel for business, tourism, visiting family, and transit purposes between the two countries.

Premier Li’s focus on critical minerals and green energy during his visit underscores China’s interest in accessing Australian resources essential for its decarbonisation efforts. The visit to a lithium processing plant in Western Australia and Fortescue’s hydrogen research hub highlights the potential for collaboration between Australian and Chinese companies in the green energy sector.

Additionally, Premier Li’s visit to a South Australian winery following the lifting of tariffs on Australian wine in March signifies a positive step towards restoring trade relations in the wine industry. However, challenges remain for Australian lobster exports, which are still subject to trade restrictions imposed in 2020.

Overall, Premier Li’s visit represents a significant milestone in the ongoing efforts to stabilise Australia-China relations and enhance economic cooperation. While opportunities for cross-border business are on the rise, businesses must navigate legal and regulatory challenges to fully leverage the potential benefits of this renewed engagement.