Australia's Foreign Minister Marise Payne
Australian Foreign Minister Marise Payne will travel to China this week, the two governments announced on Monday, as China ended an unofficial suspension for more than six months of visits by top Australian government ministers.
Ties between the two countries, which compete for influence in Asia and particularly in the Pacific, have been strained since Australia accused China of meddling in its domestic affairs late last year.
Ending the stand-off, China's foreign ministry said Payne's visit, which begins on Wednesday, will include talks with State Councillor and Foreign Minister Wang Yi.
Her trip is being seen in Australia as a bid by China to seek warmer ties with Australia's recently installed Prime Minister Scott Morrison.
Workers are putting the finishing touches on a Beijing-funded boulevard designed to showcase Papua New Guinea’s (PNG) capital to visiting world leaders at this month’s Asia-Pacific Economic Cooperation forum.Critics say the six-lane road - complete with wide, illuminated footpaths - is emblematic of a regional power play whereby donor countries vie for influence with show-stopper gifts, even as deeper problems plague the Pacific nation.Australia, PNG’s traditional partner and a close Washington ally, is lifting aid and has plowed more than A$120 million ($86.5 million) into APEC, seeking to keep its sway over its neighbor.Allan Bird, a parliamentarian and governor of PNG’s second largest province, said the boulevard outside parliament house had little practical benefit.“Whatever the Chinese government spent on it, it could have been better spent somewhere else, buying medicine or building a school,” Bird told Reuters.Amid trade war, China premier says Sino-US ties can improvePakistani premier to pay official visit to ChinaAustralia to help PNG build a navy base to fend-off ChinaBird said such gifts put pressure on traditional partners such as Australia to place less restrictions around donated funds and refrain from criticizing PNG’s own spending, which controversially includes buying 40 Maseratis and three Bentleys for APEC.“There is no transparency around the use of public finances,” Bird said.“The government can turn to other donors and tell them to ‘toe the line or else we’ll be quite happy to take Chinese money’. They use it as leverage.”The PNG government did not respond to questions on funding for the boulevard project or other aspects of APEC. PNG has previously thanked China for its infrastructure funding and aid, and denied Beijing had asserted any diplomatic pressure.Chinese Foreign Ministry spokesman Lu Kang said people should be supportive of the PNG government’s efforts to promote regional economic integration by hosting the summit.“At the request of the Papua New Guinea side, China has proactively provided support and help for the hosting, which I can tell you has been warmly welcomed by the Papua New Guinea government and people,” Lu told reporters in response to Reuters questions, without providing a figure.Speaking in Port Moresby on Wednesday, the Chinese government’s top diplomat, State Councillor Wang Yi, said in recent years his country had helped build more than 100 projects in PNG and other Pacific island nations, including schools and hospitals, which these countries had greatly appreciated.“Whether China’s aid is good or not, the governments and people of those countries being aided have the most right to speak,” Wang said, according to China’s Foreign Ministry.China says Xi-Trump call was quite positiveTrump asks officials to draft possible trade deal with ChinaTrump says had good talk with China's Xi on trade, North KoreaAiding And IndebtingIf the region - pivotal in the Pacific battles of World War II - is a strategic treasure, PNG is one of its jewels.It controls large swaths of ocean, is rich in mineral resources and is close to both U.S. military bases on the island of Guam and to Australia.Formerly administered by Canberra, PNG has in recent years turned increasingly to China for financing as Beijing becomes a bigger player in the region.PNG has the largest debt to China in the South Pacific, at almost $590 million, representing about one-quarter of its total external debt.When world leaders arrive in the capital of Port Moresby for APEC, the contributions of donors will be obvious.Australia will provide security personnel, naval patrol boats and a helicopter-docking ship; and the city will have an upgraded sewerage system care of the Japanese government.Beijing has refurbished the show-piece convention center and gifted coaches, mini-buses and fire-engines.China also rebuilt city’s main highway, which according to Moresby-based think tank the Institute of National Affairs, didn’t really need an upgrade.The institute’s executive director, Paul Barker, said the resurfaced streets and new boulevard had little public benefit.“It’s hard to imagine the boulevard will have any use other than marches or grand displays from time to time,” he said.“It’s not really a road that goes from anywhere to anywhere.”While the exact cost of each project is unclear, a Reuters analysis of PNG government announcements shows China’s total bill would be several tens of millions of dollars.Australia’s A$120 million contribution to the event represents nearly a third of what Canberra spent when hosting world leaders for G20 in 2014.Australian foreign aid to PNG is budgeted to hit a record A$572 million this year as Canberra diverts more capital to the Pacific at the expense of other regions.On Thursday, Australia announced it would help fund a PNG navy base that China had expressed an interest in funding.“Over the last year, we have seen Australia and New Zealand aggressively expand their focus on the Pacific, which is something we are very pleased about,” said a senior U.S. official, who spoke on condition of anonymity.Australia’s Minister for Foreign Affairs Marise Payne declined to comment on Canberra’s funding for APEC. Australia has previously said it was “partnering” with PNG to showcase trade, tourism and investment opportunities.US official denies report of possible China trade dealTesla seeks to reduce tariff impact for Model 3 by making cars in ChinaChina promises Pakistan support as Khan tells of 'very difficult' economyThe Fast And The Furious“(PNG Prime Minister) Peter O’Neill sees APEC as putting PNG on the world stage,” a British official told Reuters. “If a donor wants to win favor with O’Neill, assisting with APEC is the way to do it.”Yet, while gifts pour in, parts of PNG are still struggling to recover after a massive earthquake in February killed more than 100 people, destroying crops and infrastructure.Polio, a potentially deadly and highly infectious viral disease almost eradicated globally, also re-emerged in PNG in recent weeks.Faced with such challenges, the purchase by the PNG government of a fleet of luxury vehicles has sparked public protests.Retailing in Australia at more than A$200,000 ($141,560), a Maserati is well beyond the reach of a typical PNG local, who earns on average $2,400 each year, according to U.N. data.PNG’s government has said it has agreements in place to sell the cars immediately after APEC and taxpayers will bare no financial loss.Diplomatic sources told Reuters nearly all leaders attending the event would travel in special armored vehicles, making it unclear what the sports cars will be used for.Donors have so far largely refrained from public comment.“Some are worried about rocking the boat and don’t want to threaten bilateral relations by publicly criticizing O’Neill for buying luxury cars,” said the senior British diplomatic source.Chinese chip firm Fujian Jinhua denies stealing IP from MicronTrump says 'I think we'll make a deal with China' on tradeChina says more talks needed on economic aid for Pakistan
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"I am looking forward to discussions with Minister Wang to enhance bilateral understanding and cooperation across the full range of Australia's interests, spanning strategic, economic and people-to-people connections," Payne said in a statement.
In Beijing, Chinese Foreign Ministry spokeswoman Hua Chunying noted that Payne and Wang had met in September on the sidelines of the U.N. General Assembly and had reached "an important consensus" on ties.
"We are willing to work hard with the Australian side on the basis of mutual respect, equality and benefit to expand exchanges and cooperation in all fields, to promote Sino-Australian relations to achieve new developments," Hua told reporters.
In August, Morrison become Australia's sixth different prime minister in the last decade after a backbench revolt ousted his predecessor, Malcolm Turnbull, who criticised China and banned its Huawei Technologies Co from Australia's broadband network.
Australia's trade minister will travel to China on Sunday, in a sign that political tensions between the two countries may be easing.Simon Birmingham, the first senior Australian government official to visit China in a year, will attend the China International Import Expo, or CIIE, seen as an attempt by Beijing to allay foreign concern about its trade practices.Relations between Australia and the world's No.2 economy have been at low ebb over accusations of China's influence in Australia's media, universities and politics and its use of loans to build leverage over poorer South Pacific island nations.Australia to help PNG build a navy base to fend-off ChinaIn August, Australia banned Huawei Technologies Co Ltd from supplying equipment for a 5G mobile network citing national security risks, a move the Chinese telecoms gear maker criticised as being "politically motivated".China, however, remains Australia's top goods and services trading partner, accounting for 24 percent, or A$183.4 billion ($132 billion), of total trade in 2017, according to data from the Department of Foreign Affairs and Trade.Birmingham said in a statement on Saturday that Australia's "high-level" delegation, which includes representation from state and territory governments, "reflects our ongoing commitment to our relationship with China".TPP to take effect following Australia’s ratificationThe minister's press office said the hope is that Birmingham will meet with his Chinese counterpart, Commerce Minister Zhong Shan while in Shanghai.Later in the week, Birmingham will visit Hong Kong where he is expected to meet with Secretary for Commerce and Economic Development Edward Yau, "to move forward negotiations on the Australia-Hong Kong Free Trade Agreement".Chinese President Xi Jinping is expected to open the CIIE with a speech on Monday. No officials from the United States, China's top trading partner, will attend, although leaders from 18 countries and thousands of foreign companies will be present.Australia must assess security threats in 5G network: spy chief
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Morrison has steered clear of foreign affairs.
"Morrison has been entirely focused on domestic politics, avoiding a lot of Turnbull's foreign policy. No doubt this has been warmly received by China," said Michael O'Keefe, head of politics at La Trobe University in Melbourne.
Signs of warmer ties will cheer Australia's business community after the diplomatic row spilled over to hit two-way trade, most notably, sales of Australian wine.
Australian wine shipments, including those produced by Treasury Wine Estates and Pernod Ricard, in June experienced temporary Chinese custom delays.
China is Australia's top goods and services trading partner, accounting for 24 percent, or A$183.4 billion ($131.88 billion), of total trade in 2017, according to data from the Department of Foreign Affairs and Trade.
"China sees an opportunity to seek a reset of the bilateral relationship on its preferred terms," John Lee, previous foreign minister Julie Bishop's former principle adviser, told Reuters.
China never officially announced a block on visits by Australian officials but in June, Australia asked China to facilitate a visit for Bishop to travel for biennial talks with her counterpart.
China never formally responded and Bishop never made the trip.