Positive interaction of political and economic relations between China and Australia after the establishment of diplomatic relations

Explored the positive interaction of political and economic relations between China and Australia after the establishment of diplomatic relations. Robert Gilpin emphasized the interaction between politics and economy, while Ralph Holter believed that politics and economy have reciprocity. Since the establishment of diplomatic relations between China and Australia in 1972, the relationship between the two countries has followed the law of benign interaction. In 1973, the two sides signed a trade agreement, laying the foundation for the development of trade. In the 1990s, the Keating government recognized that Australia needed to face Asia and promoted trade between China and Australia. In the 21st century, with China's accession to the WTO and East Asian integration, China Australia economic and trade cooperation has deepened. In 2009, China became Australia's largest trading partner. In 2012, Australia released a white paper emphasizing the importance of integrating into Asia. In 2014, China Australia relations were upgraded to a comprehensive strategic partnership, and negotiations for a free trade agreement were concluded, promoting bilateral trade liberalization and tax reduction, and strengthening cooperation in the fields of finance and education.

The crisis faced by China Australia political and economic cooperation after Turnbull's administration

The Turnbull government's China policy has undergone a significant shift in the context of tense Sino US relations, with Australia shifting from an active stance of integrating into Asia to being vigilant and constraining China's rise. Australia has strengthened its alliance with the United States, participated in the Indo Pacific strategy, and taken restrictive measures against Chinese companies on national security issues. On regional security issues, Australia holds a critical attitude towards China's military strategic deployment in the South China Sea. Although the deterioration of China Australia relations has led to trade frictions, the bilateral trade volume has not been greatly affected, mainly because trade in key commodities such as iron ore continues. Australia's dependence on the Chinese market far exceeds China's dependence on the Australian market. Australia has attempted to diversify its export market, but the results have been limited.

3 Conclusion

Political and economic exchanges promote each other, but during the Turnbull government, Australia's foreign policy adjustments led to a decline in political mutual trust between China and Australia. Despite the cooling of political relations, the trade volume has not been greatly affected, showing the "paradox" of China Australia relations. This phenomenon is caused by factors such as bilateral trade structure, commodity nature, demand volume, and market diversification. The two countries should deepen exchanges and promote the development of their relationship through third-party market cooperation and global governance platforms. Australia needs to abandon prejudice, while China should actively engage in dialogue and rebuild mutual trust.