The cooperation between China and Australia in the fields of freight trade and investment is centered on resource complementarity. Through measures such as upgrading the free trade agreement, joint development of strategic industries, infrastructure investment, and financial innovation, the cooperation has been deepened. The specific cooperation areas and achievements are as follows:
I. Upgrading the Free Trade Agreement: Tariff Reductions and Trade Facilitation
Expanding Tariff Reductions
The Memorandum of Understanding on the Implementation of the China-Australia Free Trade Agreement signed in 2024 will reduce tariffs on 98% of goods exported to Australia to zero, covering core Chinese export categories such as machinery and textiles.
Establishment of a Rapid Clearance Mechanism for Agricultural Products
After the establishment of the rapid clearance mechanism for agricultural products, the inspection period for dairy products was shortened from 14 days to 72 hours, significantly improving the export efficiency of Australian beef, wine, and other products to China.
Case: In the ten years since the implementation of the China-Australia Free Trade Agreement (2015-2024), trade in agricultural products increased by 187%, with the export growth rate of Australian health products to China reaching 21.3% in 2023.
Digital Trade Cooperation
Establishment of a Special Working Group on Digital Trade to promote the interconnection of cross-border e-commerce payment systems and simplify the registration process for cross-border e-commerce.
Achievements: Through the "white list" mechanism for cross-border e-commerce, Australian health product enterprises have significantly improved the efficiency of bonded warehouse customs clearance, with some products completing registration before even taking off from Australia.
II. Joint Development of Strategic Industries: Resources and New Energy Cooperation
Clean Energy and Critical Minerals
Establishment of a joint working group on clean energy to determine joint development projects for strategic resources such as lithium and rare earths. For example, Beijing Energy International Holdings Limited acquired five photovoltaic power plants in Australia, with an expected annual power generation of 2.2 billion kilowatt-hours and a reduction of 1.7 million tons of carbon emissions.
Joint construction of the largest vanadium battery energy storage experimental base in the Southern Hemisphere, aiming to achieve a charge and discharge efficiency of over 85%; joint development of perovskite batteries, with a planned mass production efficiency of 28% by 2027.
Priority List for Infrastructure Investment
The first batch of projects includes the renovation of the iron ore railway in Western Australia (increasing capacity to 150 million tons per year) and the construction of a photovoltaic power station in Queensland (with an installed capacity of 500 MW).
Case: The Tasmanian Wind Farm project invested by China Power Construction Corporation has generated 2 billion kilowatt-hours of electricity in five years, providing power to 63,500 households.
III. Mutual Recognition of Financial Services and Investment Facilitation
Financial Services Pilot
Allowing financial institutions from both countries to issue bonds across borders and simplifying the approval process for cross-border investment.
Achievements: In 2023, Australia's actual investment in China increased by 17.1%, and the number of newly established Australian-funded enterprises increased by 40.2%.
Enterprise Compliance Support
Establishment of an enterprise compliance guidance center to provide cross-border investment legal risk diagnosis and reduce trade dispute costs.
Case: Australian health product enterprises have obtained five "Blue Hat" health product certifications through the unified certification standards of the China-Australia Free Trade Agreement, opening up dual channels of "cross-border e-commerce + general trade import".
IV. Early Warning Mechanism for Trade Disputes and Security Dialogue
Commodity Price Monitoring
Establishment of a price warning platform for iron ore and lithium ore, setting price fluctuation red lines, and shortening the processing time for dispute cases by 30%.
Achievements: In 2023, Australia's iron ore exports to China reached 980 million tons, accounting for more than 60% of its total exports, with controllable price fluctuation risks.
Maritime Rights Consultation
Establishment of a maritime rights working group to hold quarterly technical talks on navigation rules in the South China Sea, sharing hydrological data of shipping lanes, and maintaining the security of strategic channels.
V. Regional Governance Coordination and Expansion into Emerging Fields
Cooperation with Pacific Island Countries
Establishment of a 2-billion-dollar joint development fund for the expansion of ports in the Solomon Islands and the construction of disaster prevention systems in Fiji, with joint construction by Chinese and Australian enterprises.
Case: Dispatching a joint medical team from China and Australia to Vanuatu to enhance regional public health capabilities.
Green Economy and Digital Technology
Joint research and development of 6G communication technology, with simultaneous construction of terahertz band test fields in Sydney and Shenzhen; development of smart agricultural management systems, with the deployment of 5,000 IoT monitoring nodes in the Murray-Darling Basin.
Goal: By 2030, the installed capacity of clean energy cooperation projects will reach 50 GW, accounting for 15% of Australia's total power generation.
