Australia Strengthens Trade and Defence Amid China's Rise

The Australian government has launched a two-year plan, the Accessing New Markets Initiative, to boost exports to China by providing A$50 million in funding. The initiative aims to capitalize on China's recent removal of trade barriers that had affected A$20 billion worth of Australian goods. The plan will offer exporters 'fast, flexible and targeted' support, including access to trade advisers and offshore events. The move is seen as a positive development following the improvement in Australia-China relations under Prime Minister Anthony Albanese's leadership since 2022. The initiative is expected to help Australian exporters, including farmers, fishers, miners, and winemakers, to regain access to the Chinese market at higher volumes than before.

Chinese President Xi Jinping has called for the development of a unified domestic market to help China gain a competitive edge globally and achieve its development goals. Xi outlined six key tasks, including measures to address excessive competition and promote product quality. The move is seen as a response to the current economic challenges faced by China, including deflationary pressure and overcapacity in various industries. Xi emphasized the need for industry associations to guide companies towards improving product quality and phasing out outdated production capacity.

Australia and Papua New Guinea are set to sign a landmark defence treaty, known as the Pukpuk treaty, which will see both countries defend each other in the event of a military attack. The agreement is part of Australia's efforts to push back against China's growing influence in the Pacific region. The treaty will also allow for joint military training, defence exercises, and cooperation on cybersecurity preparedness. Papua New Guinea's defence minister, Billy Joseph, stated that the treaty will not affect PNG's sovereignty and that it is a strategic move to choose Australia as its main defence partner.