Damon Mcknight
Australia and China have a complex relationship that is influenced by historical, cultural, economic, and political factors. While the two countries have longstanding community and cultural links, their official relations have been strained in recent years due to various disputes and differences in values and political systems. China is Australia's largest two-way trading partner, and the countries have a free trade agreement in place, benefiting from economic cooperation. However, they have also been engaged in a trade dispute since 2020, and Australia has raised concerns about human rights issues and freedom of navigation in the region. Public opinion in Australia towards China is mixed, with some Australians expressing negative views related to human rights abuses, political differences, and the potential threat China may pose to Australia and its interests.
| Characteristics | Values |
|---|---|
| Diplomatic relations established | 1972 |
| Embassy in Beijing established | 1973 |
| Relationship described as | "Comprehensive strategic partnership" |
| China's position as largest trading partner achieved | 2007 |
| China-Australia Free Trade Agreement (ChAFTA) in force | 20 December 2015 |
| China's rank as foreign direct investor in Australia | Fifth-largest |
| Investment stock worth in 2023 | $47 billion |
| Two-way trade in 2023-24 | $325 billion |
| Goods and services exports to China in 2023-24 | $212.7 billion |
| Sister-state/province and sister-city relationships | 100 |
| Human rights issues raised by Australia | Freedom of expression, freedom of religion, treatment of political prisoners and ethnic minorities, torture, the death penalty, and the rights of legal practitioners and civil rights activists |
| Australians' perception of China | Human rights abuses, lack of freedoms, threats, political system |
| Australians' perception of China's people | N/A |
| Australians' perception of China's government | Negative |
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What You'll Learn
Australia and China have a strong economic relationship
Australia and China have a complex relationship that has evolved over the years. While there have been tensions and disputes between the two countries, it is evident that they also share strong economic ties.
China is Australia's largest two-way trading partner, accounting for around a third of Australia's exports and 26% of its goods and services trade with the world in 2023-24. Bilateral trade between the two countries is valued at over $300 billion, with Australian exports to China totalling $212.7 billion in 2023-24. China's demand for Australian exports, particularly iron ore, coal, liquefied natural gas, and agricultural products, helped Australia weather the 2008 financial crisis and has contributed to its continued economic growth.
The China-Australia Free Trade Agreement (ChAFTA), which came into force in 2015, has further strengthened their economic relationship. ChAFTA provides Australian businesses with improved access to the Chinese market through lower tariffs, enhancing their competitiveness and boosting economic growth and job creation in Australia. China is also a significant source of foreign investment in Australia, valued at $47 billion in 2023, and this investment has diversified beyond the mining sector into areas such as infrastructure and healthcare.
The two countries also collaborate through multilateral organizations such as APEC, the East Asia Summit, and the G20, and have established forums for dialogue and engagement, such as the Australia-China High-Level Dialogue, which aim to enhance mutual understanding and constructive discussion on trade, investment, and regional security issues.
Despite the strong economic relationship, it is worth noting that there have been periods of tension and disputes between Australia and China, including concerns about Chinese political influence in Australia and trade disputes. However, the economic ties between the two countries remain significant and underpin their mutual engagement.
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China is Australia's largest two-way trading partner
The strong economic relationship between the two countries is underpinned by the China–Australia Free Trade Agreement (ChAFTA), which came into force in December 2015. ChAFTA has enhanced Australia's competitiveness in the Chinese market, boosted economic growth, and created jobs. Lower tariffs under the agreement have been utilised by businesses, with a utilisation rate of over 90% in both directions. In addition to ChAFTA, Australia and China are both parties to the Regional Comprehensive Economic Partnership Agreement (RCEP).
China's demand for natural resources, such as iron ore, coal, and liquefied natural gas, has made it Australia's biggest trading partner. Many major Australian mining companies, including Fortescue Metals Group, Rio Tinto, and BHP Billiton, rely heavily on exports to China and other growing economies. China, on the other hand, exports a range of manufactured goods to Australia, including clothing, telecommunications equipment, computers, toys, and sporting equipment.
The bilateral relationship between Australia and China is based on strong economic and trade complementarities, as well as longstanding community and cultural links. Australia has a significant Chinese minority group, dating back to the Qing dynasty. Despite differences in political systems and views on certain issues, both countries acknowledged their relationship as a "comprehensive strategic partnership" in 2014. However, in recent years, the relationship has been strained due to concerns over Chinese political influence in Australia and disputes over trade and territorial waters.
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Australia raises human rights issues with China
Australia and China have had diplomatic relations since 1972, and their bilateral relationship is based on strong economic and trade complementarities, as well as longstanding community and cultural links. China is Australia's largest two-way trading partner, accounting for 26% of its goods and services trade with the world in 2023-24. Two-way trade with China increased by 2.6% in 2023-24, totalling $325 billion.
However, official relations between the two countries have been strained in recent years. In 2020, Australia called for an investigation into the origins of the coronavirus, to which China responded by imposing new tariffs. China has also objected to Australia's "freedom of navigation operations" (FONOPs) in disputed sea routes between the two countries, such as the South China Sea and Taiwan Strait. China has responded to these operations with naval exercises near Australian waters.
There is also tension regarding human rights issues. Australia has raised a wide range of human rights concerns with China, including freedom of expression, freedom of religion, treatment of political prisoners and ethnic minorities (including abuses in Xinjiang and Tibet), torture, the death penalty, and the rights of legal practitioners and civil rights activists. In 2022, the Office of the UN High Commissioner for Human Rights released a report on Xinjiang that found that the Chinese government had committed serious human rights violations against Uyghurs and other Turkic Muslims, amounting to crimes against humanity. Australia led a joint statement at the United Nations urging China to implement the report's recommendations, and Amnesty International and Human Rights Watch have called on the Australian government to take the lead in publicly criticizing China's human rights abuses.
Despite these tensions, Australia and China continue to engage in dialogue and maintain their economic relationship. In July 2025, Australia's Prime Minister Anthony Albanese travelled to Beijing for an "annual leaders' meeting" with Chinese President Xi Jinping. They discussed global and regional issues, as well as bilateral matters of trade and tourism.
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China's political system is a concern for Australians
China and Australia have had a complex relationship, with growing economic ties but differing political systems and views. China is Australia's largest two-way trading partner, with two-way trade totalling $325 billion in 2023-24, and Chinese students and tourists contribute significantly to Australia's economy. However, the countries have differing political systems and views, and official relations have been strained in recent years.
There are also concerns about human rights abuses and a lack of freedoms in China, with 23% of Australians surveyed mentioning these issues. Specifically, there is concern about the treatment of ethnic minorities, such as the Uyghur people in the Xinjiang region, with some Australians using the word "genocide" to describe the situation. Other issues mentioned by Australians include the lack of freedom of expression, government repression, censorship, and the use of a “surveillance state" to keep the government in power.
In addition to these ideological differences, there are also concerns about China's attempts to influence Australian politics and interfere with civil society debate. There have been revelations about large political donations from ethnic Chinese individuals and businesses linked to the CCP, which are being used to try to alter the China policies of major Australian political parties. There are also concerns about Chinese-language media and local civic organisations promoting narratives and individuals who are friendly to Beijing, and "astroturfing" local grassroots organisations to give the appearance of broad support for Beijing within the Chinese Australian community. These issues have created tensions in the Australia-China relationship and led to a worsening of public opinion towards China in Australia.
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Australia and China have a history of diplomatic relations
Australia and China have had diplomatic relations since 1941, when Australia recognised the Republic of China (ROC). The two countries have had a complex relationship, with periods of cooperation and tension. In 1949, when the ROC government retreated to Taiwan after losing the Chinese Civil War, Australia continued to recognise the ROC and refused to accept ambassadors from the People's Republic of China (PRC). This stance shifted in 1972, when Australia officially recognised the PRC and established diplomatic relations.
In the following decades, Australia and China developed strong economic and cultural ties. China became Australia's largest two-way trading partner, and the two countries signed the China-Australia Free Trade Agreement (ChAFTA) in 2015, boosting economic growth and creating jobs. Australia and China also share around 100 sister-state/province and sister-city relationships, and Chinese Australians have been a significant minority group in the country since the Qing dynasty.
However, the Australia-China relationship has also been marked by periods of tension and disagreement. In recent years, there have been disputes over trade, human rights issues, and territorial claims. In 2020, Australia called for an investigation into the origins of the coronavirus, leading China to impose new tariffs on Australian imports and restrict coal imports. There have also been disagreements over Australia's participation in freedom of navigation exercises in disputed sea routes between the two countries, and Australia has raised concerns over human rights abuses in Xinjiang and Tibet.
Despite these challenges, both countries have continued to engage and cooperate in various areas. Australia adheres to a one-China policy, and works to support the welfare of its citizens and promote its strategic, security, and trade interests in its engagement with China. The National Foundation for Australia-China Relations, established in 2020, aims to strengthen constructive engagement and build links between the two countries. While there are differences to manage, Australia has expressed its willingness to cooperate with China where possible and engage in the national interest.
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Frequently asked questions
The relationship between Australia and China is complex and multifaceted. While the two countries share strong economic and trade ties, with China being Australia's largest two-way trading partner, there are also political and ideological differences that have caused tensions. Australia has raised concerns about human rights issues in China, including freedom of expression and religion, and the treatment of ethnic minorities. There have also been disputes over territorial waters and Australia's alignment with the United States.
Australia has sought to balance its economic interests with China while maintaining its security arrangements with the United States. Australia has a one-China policy, not recognizing Taiwan as a country, and has worked to promote trade, investment, and cultural ties with China. However, there have been concerns about China's increasing influence, with some Australians perceiving it as a threat to their country and values.
Australians' views of China are mixed. While many recognize the importance of the economic relationship, some Australians have negative perceptions of China, often focusing on its political system, human rights record, and perceived threats. Others have expressed concerns about racial biases and the influence of media narratives on public opinion.
