On December 23rd 2024, Ambassador Xiao Qian received an exclusive year-end interview with Ben Packham, the Australian's foreign affairs and defence correspondent, and elaborated China's position on China-Australia relations, China's economy, the South China Sea and others. The full text of the interview is as follows:

The Australian: The Australia-China relationship has undergone some big changes since you arrived in January 2022. How would you describe the progress that has been made in repairing that relationship? What is the next step you would like to see in improving Australia-China ties? Are there any policy changes that China would like to see from the Australian side?

Xiao Qian: Since the Labor government took office, under the strategic guidance of the leaders of China and Australia, the bilateral relationship has achieved stabilization, improvement, and a comprehensive turnaround, entering a critical period of further development on a stable foundation. 

Both sides have upheld the China-Australia Comprehensive Strategic Partnership, navigating through challenges and overcoming difficulties together. The year 2022 marked the Year of Stabilization for China-Australia relations, during which President Xi Jinping met with Prime Minister Albanese on the sidelines of the G20 Bali Summit, reaching significant consensus on reaffirming the commitment to comprehensive strategic partnership and accelerating the improvement of bilateral ties. The years 2023 and 2024 have respectively been designated as the Year of Exchange and Dialogue and the Year of Comprehensive Turnaround for China-Australia relations. During this time, the two leaders held multiple meetings, Premier Li Qiang and Prime Minister Albanese successfully conducting reciprocal visits, injecting vitality, enriching substance, and expanding the potential for development in the China-Australia Comprehensive Strategic Partnership.

Under the leadership of high-level exchanges, dialogues and engagements across various sectors and levels have resumed and been promoted in an orderly manner, practical cooperation has achieved notable progresses and people-to-people exchanges are becoming more active. According to data, the total value of China-Australia goods trade exceeded AUD 300 billion for the first time in 2023. China has remained Australia's largest trading partner, export destination and import source for 15 consecutive years. In the 2022-2023 fiscal year, trade with China increased the average disposable income of Australian households by AUD 2,600, accounting for 4.6% of Australia's average household disposable income, and created 595,600 jobs, equivalent to 4.2% of Australia's total employment. Since the inaugural China International Import Expo in 2018, Australian companies have participated annually, with over 250 Australian companies participating this year, setting a new record. Both sides have also agreed on a visa reciprocity arrangement, with China putting Australia in its list of unilateral visa-free countries, facilitating the travel between the two countries. Australia has become China's fifth-largest source of inbound tourists, while China has become Australia's second-largest source of tourists and its largest source of international students.

Recently, on the sidelines of the G20 Leaders' Summit, President Xi Jinping once again met with Prime Minister Albanese, reaching important consensus on promoting the improvement and development of bilateral relations, expanding mutually beneficial cooperation, and supporting and upholding economic globalization and free trade. This provides strategic direction for the healthy and stable development of China-Australia relations. A healthy and stable China-Australia relationship serves the common interests of both countries and their peoples, and meets the shared expectations of the regional countries. Looking to the future, we hope both sides will further enhance political mutual trust, properly manage divergences, deepen practical cooperation, share development opportunities, and jointly build a more mature, stable, and fruitful Comprehensive Strategic Partnership. This will contribute more significantly to regional and global peace and development.

The Australian: What is your comment on the current China-Australia relationship? What are your expectations for the future of the relationship between the two countries?

Xiao Qian: The year 2024 is a year of accomplishments for China-Australia relations. With the joint efforts of both sides, the relationship between the two countries has stabilized and achieved a comprehensive turnaround, moving towards an important stage of greater maturity and stability. This is in the common interests of the two countries and peoples. China and Australia are friends, not foes; we are partners of mutual benefit and win-win cooperation, not rivals of zero-sum competition. China and Australia have different social systems and historical and cultural backgrounds. Despite there are some differences between our two countries,the key lies in managing and addressing them appropriately and ensuring that they do not define the bilateral relationship. Looking into the future, the two sides should, under the guidance of the important consensus reached by the leaders of the two countries, focus on common interests, properly manage differences, deepen mutually beneficial cooperation, and promote the sustained, healthy and stable development of China-Australia relations.

The Taiwan question, which bears on China's core interests and major concerns, is the fundamental prerequisite for the development of China-Australia relations. However, there are some misunderstandings in Australia. Hereby I would like to emphasize three points.

First, cross-strait relations are relations between the central government and local governments. Taiwan is by no means a sovereign state. There is but one China in the world, Taiwan is an inalienable part of China's territory, and the government of the People's Republic of China is the sole legal government representing the whole of China. This is widely recognized by the international community and is an important part of the post-war international order. The Australian Government has stated that it would uphold the rule-based international order, and there is no reason to compromise on recognizing and supporting one China.

Second, peaceful reunification is China's first choice in resolving the Taiwan question. As people on both sides of the Taiwan Strait share the same roots, language and culture, no one wants peaceful reunification more than China. However, if “Taiwan independence” separatists and external forces provoke and force their way through, or even trample our red lines in an attempt to split China, we will be forced to take resolute measures. China's Anti-Secession Law provides for three situations in which the use of force is not ruled out, with the aim of preventing “Taiwan independence” separatists from splitting the motherland. The early realization of the complete reunification of the motherland is the common aspiration of all Chinese compatriots.

Third, the one-China principle is the most fundamental political foundation of China-Australia relations. For more than 50 years since the establishment of diplomatic relations between China and Australia, the Australian governments have adhered to the one-China principle. Be it the one-China principle or the one-China policy, the core is that, there is but one China, and Taiwan is an inalienable part of China’s territory. This is also the only one status quo in the Taiwan Strait. Australia should earnestly respect China's sovereignty and territorial integrity, be consistent in words and deeds without compromise, and respect and publicly support China's peaceful reunification.

People from various fields in Australia are generally concerned about the uncertainty of the upcoming Australian federal election on China-Australia relations. Therefore, I would like to point out that both the two parties in Australia have historically made important contributions to the development of China-Australia relations. The establishment of diplomatic relations between China and Australia was facilitated by Gough Whitlam,then Australian Prime Minister and leader of the Australian Labor Party, and the establishment of the China-Australia Comprehensive Strategic Partnership was achieved during the Australian Coalition government. At present, China-Australia relations have become increasingly mature and stable. Regardless of the outcome of the Australian federal election,the relations between our two countries will certainly achieve greater development as long as the Australian sides adheres to the Comprehensive Strategic Partnership and acts in the fundamental interests of the two countries and peoples.

The Australian: The China Daily said other global leaders should emulate Anthony Albanese's approach to dealing with China. How much do you credit Prime Minister and Penny Wong for the improvement in bilateral relations?

Xiao Qian: Chinese media enjoys freedom of expression, and China Daily's opinions reflect its own views and the sentiments of Chinese readers.

I would like to emphasize that China and Australia are friends, not foes; we are partners of mutual benefit and win-win cooperation, not rivals of zero-sum competition. While the two sides may have divergences on certain issues, we share significant common interests in broader areas. History and reality both demonstrate that cooperation benefits both China and Australia, while confrontation harms us both. The two sides should move toward each other, manage differences appropriately, and expand our shared interests. This serves the common interests of both countries and their peoples and meets the expectations of countries in the region.

China's policy toward the United States has always been consistent. Our commitment to the stable, healthy, and sustainable development of China-U.S. relations remains unchanged. Our adherence to the principles of mutual respect, peaceful coexistence, and win-win cooperation in handling bilateral relations is steadfast. China's determination to safeguard its sovereignty, security, and development interests remains firm, as does our aspiration to carry forward the traditional friendship between the Chinese and American peoples. China does not oppose the development of a constructive bilateral relationship between Australia and the United States. However, the development of Australia-U.S. ties should not be based on Cold-War mentality and zero-sum game mindset, nor should it provoke division and confrontation or exacerbate global tensions.

Both China and Australia are significant nations in the region, each with its own national interests. Ultimately, how to manage external relations should be determined independently based on the interests of their respective peoples. China fully respects Australia's sovereignty and national interests and has always regarded Australia as an important partner. We are committed to viewing and developing China-Australia relations on the basis of mutual respect, equality, and a willingness to seek common ground while setting aside differences. The development of China-Australia relations is not directed at any third party and should not be influenced by external interference.

The Australian: How much of the improvement in relations is due to China and the end of its so-called “Wolf Warrior diplomacy”?

Xiao Qian: Regarding China's diplomacy, its foreign policy has remained consistent while the outside world has different views  across various periods. China has consistently pursued an independent and peaceful foreign policy. Regardless of changes in the international landscape, China has steadfastly upheld the banner of peace, development, cooperation, and win-win, adhering to the mission of safeguarding world peace and promoting common development. We actively engage in friendly cooperation with other countries and work to build a community with a shared future for mankind.

China is willing to develop high-level cooperative relationships with all friendly nations worldwide. At the same time, we firmly oppose any actions that harm China's national interests or undermine regional peace and stability for selfish gains. While we never seek to bully others, we will never stand idly by or remain indifferent to actions that damage China's interests.

Previously, China-Australia relations encountered significant difficulties, primarily due to the faultful policies to China adopted by the then-Australian government. The responsibility did not lie with China. In recent years, the gradual improvement and development of China-Australia relations have been the result of both sides moving toward each other and working together. The current momentum of improving relations is hard-earned and should be cherished. China is ready to work with Australia to draw lessons from the past, adhere to the principles of proper engagement, and strengthen dialogue and cooperation with an open mind. By deepening political mutual trust, managing divergences  appropriately, we can promote the sustained, healthy and stable development of bilateral relations.

The Australian: Penny Wong says Australia is in a “permanent state of contest” with China. What's your view? 

Xiao Qian: Firstly, I would like to correct your inaccurate statement. While Foreign Minister Penny Wong referred to a state of permanent contest, she did not specifically mention China or China-Australia relations. I respect Minister Wong and will refrain from making public comments on her remarks. The governments of China and Australia maintain open and effective channels of communication.

I would like to emphasize that the essence of China-Australia relations is mutual benefit and win-win cooperation. The economies are highly complementary to each other, making us natural partners. China provides a vast and stable market for Australia's abundant mineral resources, while Chinese new energy vehicles offer Australian consumers high-quality and affordable options. Moreover, China and Australia share common ground on issues such as climate change and clean energy, and there is tremendous potential for cooperation in emerging fields such as the digital economy, technological innovation, and health industries. Strengthened cooperation between China and Australia will bring tangible benefits to both countries and their peoples, effectively safeguard the stability of global industrial and supply chains, and exemplify mutual benefit and win-win outcomes.

At the same time, China and Australia have different social systems, historical and cultural backgrounds, and are at different development stage. It's inevitable that the two counties have some divergences. The key lies in managing and addressing these differences appropriately, ensuring that they do not define the bilateral relationship. Now that China-Australia relations are back on the right track, it is important to stay the course without hesitation, avoid deviations, and refrain from regressing. This aligns with the shared interests of both countries and their peoples and reflects the broader expectations of nations in the region.

The Australian: Many diplomats in Canberra say you have been very successful in helping to turn things around. What has been your guiding philosophy as Ambassador?

Xiao Qian: An ambassador serves as a bridge and a bond between two countries. As Chinese Ambassador to Australia, safeguarding China's national interests and promoting mutually beneficial cooperation between China and Australia are my sacred duties and important mission.

Since assuming post in early 2022, I have been committed to identifying where our interests converge, advancing mutually beneficial cooperation, and expanding shared interests. At the same time, I recognized the divergences that exist between China and Australia, and have consistently worked to encourage both sides to address and manage these divergences through dialogue and consultation, ensuring that they do not affect the trajectory of our bilateral relations.

The facts demonstrate that the common interests between China and Australia far outweigh our divergences. As long as both sides adhere to the principles of mutual respect, equality, and seeking common ground while setting aside differences, China-Australia relations will undoubtedly continue to flourish. This has been the guiding principle of mine throughout my tenure as Chinese Ambassador. Over the past three years, I have witnessed China-Australia relations returning to a path of healthy and stable development. I am pleased to have contributed to this progress and deeply grateful for the valuable support I have received from all folks of Australian in fulfilling my duties. Looking ahead, I will continue to work tirelessly with the Australian side to further advance China-Australia relations and achieve even greater progress.

The Australian: The Australian government recently announced that China has lifted import restrictions on Australian lobsters. What is your comment?

Xiao Qian: During the the Leaders' Meetings on East Asia Cooperation in October this year,Premier Li Qiang and Prime Minister Anthony Albanese reached an important consensus on the full resumption of Australian lobster exports to China by the end of this year. Since then, the competent authorities of the two countries have maintained close communication on technical issues such as inspection and quarantine. Recently, China has informed the Australian side in Beijing that routine port inspection and quarantine of Australian lobsters exported to China has been resumed. This is a significant momentum for bilateral relations. We expect more progress in bilateral relations.

The Australian: The Australian government intends to cut government funding for the Australian Strategic Policy Institute (ASPI), which is known for criticizing China. What is your comment on this?

Xiao Qian: This is a matter of Australia's internal affairs and I will not comment on it. What I would like to emphasize is that ASPI has long published negative remarks about China, attacked and smeared China, and is used to looking at China with “tinted glasses” and based on the Cold War mentality, believing that China is a strong country that will be “hegemonic”, and that once it becomes a superpower, it will bully other countries. Such malicious speculation is groundless and demonstrates a complete lack of understanding of the real China. We welcomes Australian think tanks, including ASPI, to visit China to strengthen exchanges with Chinese specialists and scholars and learn about the real China with their own eyes and feelings.

The Australian: What is your comment on the Australian government's seemingly intentional exclusion of China from police cooperation with the Pacific Island countries?

Xiao Qian: China's relations with the Pacific island countries are no different from those with other developing countries. China has been always supporting the economic and social development of the island countries, which has been welcomed by the governments and peoples. China's police cooperation with some of the island countries is to maintain the order of the local society, without any intention of building military bases or geopolitical purposes.

China and Australia have no conflict in developing relations with the island countries, but only common interests. China is open to tripartite or multi-party cooperation in such areas of concern to the islands as climate change and policing, and is willing to work with Australia to promote the economic and social development of the island countries.

The Australian: Treasurer Jim Chalmers has warned the slowing Chinese economy is feeding the more pessimistic outlook for the Australian economy. Will China be an economic drag on Australia in 2025, or should we be more optimistic? 

Xiao Qian: Recently, there has been significant attention from various sectors and public opinion in Australia regarding China's economy, and I would like to share a few thoughts on this matter.

This year, global economic recovery has been sluggish, and international conditions are characterized by complexity and uncertainty. China's economy is undergoing a critical phase of structural adjustment and transformation, with both cyclical and structural issues exist, leading to increased downward pressure. In the face of these new situations and challenges, the Chinese government has consistently confronted difficulties head-on and responded calmly, focusing on ensuring the well-being of the people and preventing and addressing risks in key areas.

At the Third Plenary Session of the 20th Central Committee of the Communist Party of China, over 300 important reform measures were introduced, with a systematic layout for promoting high-quality economic development, expanding high-level opening-up, and other fields. In September this year, the Political Bureau of the Communist Party of China (CPC) Central Committee held a meeting to study the current economic situation and outline the next steps for economic work. Various Chinese government departments have introduced a series of incremental policies, including further expanding domestic demand, strengthening support for businesses, and enhancing employment assistance. Recently, the Central Economic Work Conference summarized the progress of China's economic work this year, noting that development journey over the past year has been extraordinary and the achievements have been encouraging. The conference decided to implement a more proactive fiscal policy and a moderately loose monetary policy next year, providing clear direction for the country's economic development.

China's economy is underpinned by solid fundamentals, strong resilience, and abundant vitality. With the ongoing implementation of more proactive fiscal policies, moderate monetary easing, and a comprehensive package of incremental policies, China's economic vitality and momentum will continue to be released. The economy is progressing steadily, with an optimized structure, solid advancement of high-quality development, and accelerated generation of new quality productive forces. China's economic growth rate remains among the highest of major global economies. We have every reason to believe that China will achieve its development goals for the year.

Chinese modernization and high-level opening-up will create broader opportunities for China-Australia economic and trade cooperation. Looking ahead, cooperation between our two countries in traditional sectors such as energy and mining, agriculture, as well as in emerging fields like green development, digital economy, technological innovation, and the health industry, will continue to strengthen and expand. The prospects for China-Australia economic and trade cooperation are promising.

The Australian: Australia is doing more freedom of navigation operations in the South China Sea with the Philippines, Japan and the US. What is China's view of these activities? Should the Australian navy be operating at all in the South China Sea? What's the effect of these activities on regional stability?

Xiao Qian: Freedom of navigation and overflight in the South China Sea has never been a problem. China respects the right of all countries to exercise freedom of navigation in the South China Sea in accordance with international law. As a major global trading nation, China cares more than any other country about the freedom of navigation and overflight in the South China Sea, and is more proactive than any other country in safeguarding the security and smooth sailing of international shipping lanes. In fact, the South China Sea is one of the world's safest and freest sea lanes. Fifty percent of merchant vessels in the world and one-third of international maritime trade pass through it, and more than 100,000 merchant ships sail through it annually.

Thanks to the joint efforts of regional countries, the situation in the South China Sea remains generally stable and is improving. From the perspective of safeguarding regional friendship and cooperation, China has signed the Declaration on the Conduct of Parties in the South China Sea with ASEAN countries, is continuing consultations on the Code of Conduct in the South China Sea, and is actively promoting practical maritime cooperation to jointly maintain peace and stability in the South China Sea. These efforts should be fully respected by the international community.

Under such circumstances, out of selfish motives, certain non-regional countries frequently hype up matters related to the the South China Sea, and even send advanced military vessels and aircraft in a massive scale to the relevant waters in a bid to promote militarization, threaten peace and stability in the region, and attempt to drive a wedge between China and other regional countries to serve their hidden agendas. This behavior is highly disgraceful, and China firmly opposes it.

Australia is not a party to the South China Sea issue and should respect China's sovereignty and the common interests of regional countries. It should recognize the mainstream trends and the overall development of the region and play a positive role in maintaining peace and stability in the relevant waters, instead of doing the opposite.

The Australian: Do you believe Donald Trump's return to the White House will test the Australia-China relationship once again? How should Australia and China respond?

Xiao Qian: The U.S. presidential election is the domestic issue of the United States, and China respects the choice of the American people. President Xi Jinping has already congratulated Donald Trump on his election as President of the United States.

During a recent meeting with U.S. President Joe Biden, President Xi emphasized that China's policy toward the United States remains consistent and continuous. China is committed to the stable, healthy, and sustainable development of China-U.S. relations, and this goal has not changed. The principles of mutual respect, peaceful coexistence, and win-win cooperation in handling China-U.S. relations have not changed. China's firm stance on safeguarding its sovereignty, security, and development interests remains unchanged, as does China's desire to continue the traditional friendship between the peoples of the two countries. China is willing to continue dialogue with the U.S., expand cooperation, manage divergences, and maintain the hard-won momentum of stabilizing China-U.S. relations.

At present, the U.S. government is in a transition period, and the foreign and trade policies of the new U.S. administration will have significant implications for all parties, including China and Australia. Both China and Australia are important countries in the Asia-Pacific region, with extensive shared interests. In the face of risks and challenges posed by unilateralism and policy uncertainties from certain countries, China and Australia should, in accordance with the important consensus reached by their leaders, continue to promote the improvement and development of bilateral relations, expand mutually beneficial cooperation, and support and safeguard economic globalization and free trade.

The Australian: How big a risk are Donald Trump's proposed new tariffs for the Chinese and Australian economies?

Xiao Qian: As a principle, China has always maintained that there are no winners in a trade war, and such conflicts are detrimental to global development. The foreign and trade policies of the new U.S. administration will have significant implications for all parties, including China and Australia. Both China and Australia are major trading nations and beneficiaries of their bilateral free trade agreement. They should jointly support economic globalization and safeguard the international trade system, including the World Trade Organization.

I would like to emphasize that China has the world's largest middle class, a vast domestic market, a solid economic foundation, strong resilience, and abundant vitality. With the continued implementation of China's economic stimulus measures, we are confident that China's economy will continue to grow steadily and rapidly. The economic advantages of China and Australia are highly complementary, making the two countries natural partners for cooperation. The two countries have already signed a free trade agreement, and the potential for trade and economic exchanges is enormous. China is willing to share development opportunities with regional countries, including Australia, deepen mutually beneficial cooperation, jointly maintain the stability of international industrial and supply chains, reduce global economic risks and uncertainties, and collectively address risks and challenges.

The Australian: Australia is increasingly becoming a base for US forces. We have the US Marine Corps, regular rotations of US bombers, Pine Gap, and there will soon be rotations of US nuclear submarines. What is China's view of these arrangements? Do these arrangements contribute to the stability of the region, or make it more unstable?

Xiao Qian: China does not oppose normal exchanges and activities between any countries, including Australia and the United States. However, such cooperation should play a constructive role in promoting regional and global peace and stability, rather than the opposite. The strengthened military and security ties between the United States and China's neighboring countries, in coordination with its so-called Indo-Pacific Strategy, undermines China's interests and disrupts peace and stability in the Asia-Pacific region.

I would like to emphasize that China has always adhered to an independent and peaceful foreign policy, committed to being a builder of world peace, a contributor to global development, and a defender of international order. The growth of China's defense capabilities is a contribution to global peace. Relevant countries should abandon outdated Cold War mentality and bloc confrontation, adopt a correct understanding of China, cease forming exclusive clubs, and avoid actions that harm peace and stability in the Asia-Pacific region.