Australia-China Economic and Trade Cooperation Forum
Speech by Stephen Smith MP, Minister for Foreign Affairs (check against delivery)
Canberra
21 June 2010
Thank you Frank [ACBC National Chairman Frank Tudor]
Vice-President Xi, it is my great pleasure to see you again.
We met in the Great Hall of the People in March last year.
Today I am pleased to join my Ministerial colleagues and the Prime Minister in welcoming you to the Great Hall of our Parliament.
This, your fourth visit to Australia, is a most welcome sign of the importance China attaches to our bilateral relationship.
You also visited in your previous role as Party Secretary for Zhejiang Province which has a sister State relationship with my own State, Western Australia.
So we welcome you here today as an old friend and as a good friend of Australia.
History of the Relationship
In 1972 the Whitlam Government established diplomatic relations with the People's Republic of China.
At the time Australia also adopted its One China policy, maintained since by successive Australian Governments.
The 1980s, under the Government of Prime Minister Hawke, signalled a significant expansion in our relationship, with exponential growth in trade and economic ties.
The foundation of this expansion was in mineral resources and Liquefied Natural Gas, from Western Australia.
Your first visit to Australia, in 1988 as Deputy Mayor of Xiamen, came at a significant time in Australia China relations.
It was not long after China's first major investment in Australia, the Channar Iron Ore Joint Venture in the Pilbara.
That joint venture, worth AUD420 million at the time, was a trail blazer for Chinese investment in Australia.
Since then, we have had a successful succession of significant contracts, including the $50 billion Gorgon Project gas deal announced last year, the single largest trade deal in Australia's history.
Last year China was Australia's second largest source of foreign direct investment approvals, jumping from sixth place in the previous year.
Our economic relationship is now, of course, much more than minerals and petroleum resources.
Expanding our Bilateral Relationship
Just as our economic relationship has broadened, so has our relationship generally.
The Australia-China relationship is now one of Australia's most important and high profile bilateral relationships.
It is growing in its prominence and its complexity.
At a time when global economic, political and strategic influence is shifting to our part of the world, China is a key partner for Australia in tackling critical regional and global challenges.
Indeed it is hard to think of a single issue of importance to Australia where China is not a key player on the world stage.
Our dialogue has expanded in priority areas of regional security, trade, climate change, environment and development assistance.
We work together in the G20, responding to the global financial crisis.
As part of our deepening engagement, Foreign Minister Yang and I have agreed that we now take forward a one and a half track dialogue.
The Australia China Forum will consider the entirety of our comprehensive bilateral relationship.
Officials have already commenced work on arrangements to hold the inaugural Forum in Australia.
This, in my view, is long overdue and most welcome.
Mutual Respect
Australia's foreign policy is grounded in Australia's national interests and reflects Australia's values and virtues.
A productive relationship with China, based on mutual interest and mutual respect, is unambiguously in Australia's national interest.
We both recognise that we have different histories, different societies and different systems, as well as some differences of view.
Australia is committed to managing these in a straightforward and constructive way, through frank exchange and dialogue, with mutual respect and importantly an eye to the long term.
Conclusion
Looking ahead, Australia's policies towards China will continue to be constructive and forward looking, informed by our long-term strategic interests and our sense of optimism about this, the Asia-Pacific Century.
Mr Vice President, your visit with your large delegation is a most welcome and a most significant event in the further progress of our comprehensive relationship.
Thank you.