Opportunities for the two sides to work collaboratively in areas such as green economy, business leader says
David Olsson at Boao Forum For Asia in Hainan. (XU WEIWEI / CHINA DAILY)
Australia and China can improve relations through regular dialogues and enhanced exchanges, including in the business and cultural spheres, said David Olsson, national president and chairman of the Australia China Business Council.
Opportunities for China and Australia to work collaboratively are emerging in new areas, particularly in development of the green economy, Olsson told China Daily in an interview on the sidelines of the Boao Forum For Asia annual conference, which kicked off in Boao, China’s Hainan province, on March 26.
Australia has access to abundant resources of renewable energy, which can be combined with Chinese capital, technology and know-how to develop the industries of the future, Olsson said. This kind of collaboration can help, for example, “to decarbonize our iron ore and other hard-to-abate sectors, (and) to create green hydrogen to help transport industry”, he said.
Australia and China have had a very long trade and investment relationship. Despite challenges, two-way trade reached historic high levels last year. Although Chinese investment in Australia has declined in the past few years, “the recent warming of the political relationship points to a productive future”, Olsson said.
Geopolitics has been a major issue over the last few years. “But importantly, we've now got to a stage where our political leaders are talking to each other again,” Olsson said. “And we are now starting to look at the opportunities where we can collaborate more closely together.”
“Australian businesses were very pleased to see renewed communication and engagement” following the restart of the China-Australia annual leaders’ dialogue late last year and the recent visit to Australia by Chinese Foreign Minister Wang Yi, he said.
Olsson mentioned that he met with Wang when the top Chinese diplomat visited Canberra last week.
“We are working very hard on re-establishing constructive dialogue between Australia and China at a high-level political level. These meetings — both at government and business level — are critical to enabling open communication and building trust, which makes it so much easier to work through challenges and make the most of shared opportunities.” he said.
On the issue of tariffs, he expressed the hope for positive results in bilateral talks. “We also hope that China will also reduce duties that will enable us to export our lobsters to China, and also some red meats as well,” Olsson said.
Given China’s influential role in the region, Australian business leaders will need to invest a lot more effort to better understand China, in all its complexity, he said.
“The more we can do this, the better we will be at managing the relationship, and ensuring that Australia’s approach to our region reflects our own unique perspectives and interests,” Olsson said.
Meanwhile, he noted that climate change is the single biggest threat facing all nations.
“We hope that with the improvements in the bilateral relationship, there will be agreement around some form of agreement to develop a program of activity to strengthen practical cooperation around the climate challenge and green economic development,” he said.
Affirming a shared deep concern about climate change and confirming cooperation on climate change and the green economy should be a feature of future ministerial and other dialogues, Olsson suggested.
“If we did this, it could also serve to mark the next stage of China-Australia relations, one that promotes the capacity of both countries to consult and cooperate on the some of the difficult issues that we face today.”
In regard to expansion in trade and investment, “people of both countries need to be very clear about what their ambitions are, very clear (on) the areas are (that) we can cooperate, and the areas where it's not feasible for us to do so”, Olsson said.
He said that he believes collaboration on low-carbon economy offers “enormous potential to be the new frontier of trade and investment for the decades ahead”.
The warming of the previously chilly Australia-China trade relationship is positive for growth, Olsson noted.
China and Australia both need each other in economic aspects, he said, adding: “Our trade is largely complementary.”
Despite talk about economic decoupling, the evidence that it is actually taking place is scant. The challenge ahead will be to manage the political and technological challenges that arise in such a way that preserves the mutual benefit that China’s economic rise has brought to both China and the rest of the world,” Olsson said.
The Australian business leader added that he believes the most important thing for bilateral relations is to meet and talk more regularly.
“We've had the last three or four years when we've not been able to travel because of the pandemic travel restrictions, border closures,” he said. “Now we're starting to travel more frequently, and there are far more opportunities for regular, sustained, outcome-focused dialogues.”
Olsson said he also wants more educational and tourism exchanges between the two nations.
“We want to see more Chinese students coming to Australia. We want Australian students going to … China. We want more Australians to visit China for tourism, study and build new connections to China,” he said. “These are the most important things we can do in the short term.”
