Navigating Challenges and Advancing China-Australia Relations 

in a Turbulent, Complex World

——— Keynote Speech by Ambassador Xiao Qian at the ACRI’s Ambassador Dialogue Event

(19 March 2026, Sydney)

Mr Warwick Smith,

Mr James Laurenceson, 

Ladies and Gentlemen,

Friends,

    It is my great pleasure to join this Ambassador Dialogue hosted by the Australia-China Relations Institute (ACRI) and share my views on China-Australia relations. I still recall vividly that shortly after I arrived in Australia in 2022, when our bilateral relations were going through a difficult period, I, too, joined Mr Laurenceson and other friends from various sectors of Australian society here to engage in in-depth exchanges on improving our bilateral relations and expanding cooperation across the board. We appreciate Mr Laurenceson and ACRI for the platform they have provided over the years to enhance Australia’s objective understanding of China and for the positive role they have played in advancing mutually beneficial cooperation between our two countries.

    The year 2025 saw increased turbulence and transformation in the world, as well as growing instability and uncertainty. Against this backdrop, China-Australia relations withstood numerous tests, and our Comprehensive Strategic Partnership smoothly entered its second decade, demonstrating greater momentum and stronger resilience. Recently, many Australian friends have asked for my view and vision of China-Australia relations in this new period. I think the most important point is to grasp the broader context in the following three key dimensions.

    First, the international landscape is marked by instability and uncertainty, but crises also harbour opportunity. Over the past year, the international landscape has become more turbulent, with the law of the jungle and unilateralism gaining ground, bringing the cause of peace and development for humanity to a new crossroads. Some countries have amplified differences, pursued bloc confrontation, and even revived Cold War mentalities, thus undermining the foundation of trust and poisoning the atmosphere for cooperation. Even today, more than 60 conflicts continue to rage worldwide. In particular, the escalating conflict in the Middle East and Gulf region is increasingly spilling over globally. President Xi Jinping put forward the vision of common, comprehensive, cooperative and sustainable security, which points the way forward. All parties should promote talks for peace, oppose incitement, and resolve conflicts through mediation and dialogue. Amid rapid changes in the world not seen in a century, and with the Global South rising collectively and middle powers like Australia making their voices heard, the global governance system must evolve with the times, promote greater democracy in international relations, and ensure that global affairs are discussed by all and that the future of the world is shaped by all.

    Second, China keeps forging ahead with its development on all fronts. Amid a global economic slowdown, China’s GDP exceeded 140 trillion yuan last year, and is projected to increase by 6 trillion yuan this year, equivalent to the annual GDP of a developed economy. Facing growing uncertainties in the global energy landscape, China contributed to more than 50% of the world’s new renewable energy capacity, and will further develop non-fossil energy with greater intensity, accelerate the shift towards new and green energy sources and advance decarbonisation and green growth across industries. China is also making significant strides in frontier technologies such as large language models and humanoid robots, and has entered the top 10 in the Global Innovation Index ranking for the first time. As a major trading partner of more than 150 countries and regions, China continues to open its doors and share opportunities with the world, remaining the most stable and reliable engine of global growth.

    Third, China-Australia relations are advancing steadily, and the time is right for further progress. Over the past few years, China-Australia relations have emerged from a low point, stabilised, and achieved a comprehensive, fruitful turnaround. The key to this has been the strategic guidance and steady steering provided by the leaders of our two countries. President Xi Jinping and Prime Minister Anthony Albanese have met four times, agreeing to stay committed to mutual respect, seeking common ground while shelving differences, and win-win cooperation. Our prime ministers have successfully exchanged visits, and the chairman of China’s National People’s Congress Standing Committee visited Australia for the first time in 20 years. Dialogue and exchange mechanisms across various fields between China and Australia have been reactivated, practical cooperation deepened, and people-to-people exchanges continued to improve. The increasingly frequent cargo ships and flights between our two countries, the bustling Australian booths at the China International Import Expo, and the friendly interactions between our peoples in tourist attractions and cyberspace all serve as proof. The facts show that the time is right to steadily and sustainably advance the China-Australia Comprehensive Strategic Partnership.

Ladies and Gentlemen,

Friends,

    The recently concluded Two Sessions in China witnessed the conclusion of the 14th Five-Year Plan and the commencement of the 15th Five-Year Plan. The international community has been following closely the implementation of the 14th Five-Year Plan to gauge the current state of China’s economic development, and is looking to the 15th Five-Year Plan to figure out the direction China is heading to. China has set its economic growth target for 2026 at 4.5% to 5%, leaving some room for structural adjustments, risk prevention, and reform, thereby laying a solid foundation for more sustainable development in the years ahead. The 15th Five-Year Plan was reviewed and approved at the fourth session of the 14th National People’s Congress, and there are three highlights of the plan that I would like to direct your attention to:

    First, building a future-oriented, high-quality industrial system. China has identified high-quality development as a major strategic task. For the first time, the plan calls for creating new forms of smart economy, and a “6+6” industrial matrix is taking shape. Six emerging pillar industries—integrated circuits, aerospace, biomedicine, low-altitude economy, new types of energy storage, and intelligent robotics—have already reached an output value nearing 6 trillion yuan. It is projected that by 2030, this figure could double or more to surpass 10 trillion yuan. Six industries of the future—quantum technology, biomanufacturing, green hydrogen, brain-computer interfaces, embodied AI, and 6G—are on the cusp of technological breakthroughs. We are confident that more and more innovations in these areas will capture the world’s attention. Australia is well-positioned to board the fast train of China’s innovation. Together we can leverage complementary strengths, collaborate on R&D, and jointly explore international markets to seize opportunities for future growth.

    Second, developing the world’s largest consumer market. Already the world’s largest market for physical goods, China will further strengthen its large, unified domestic market, implement measures to stimulate consumption, and better unleash consumer potential. In terms of investment, China will advance the construction of six key infrastructure networks: water, power, computing power, new-generation telecommunications, urban underground pipelines, and logistics, to continuously improve people’s living and working conditions. Additionally, China will step up efforts against monopolies and unfair competition, strengthen fair competition review mechanisms, deepen reforms to curb rat-race competition, and foster a sound market ecosystem. This will provide broader, fairer, and more efficient market access for Australia’s mineral resources and distinctive agricultural products such as lobster and beef.

    Third, expanding high-standard opening-up. Over the next five years, China will focus on expanding market access and opening up, particularly in the services sector. Pilot initiatives will be further extended in areas such as value-added telecommunications, biotechnology, and wholly foreign-owned hospitals, while ensuring national treatment for foreign-funded enterprises. China will launch more accelerators of high-standard opening-up, expand its network of high-standard free trade zones, and ensure stable and unblocked industrial and supply chains. We will also facilitate faster personnel exchanges—having already granted unilateral visa-free entry to passport holders from 50 countries, including Australia—and build new bridges for open and integrated development, helping various Chinese government departments and localities better access international resources. Countries around the world, including Australia, will have even greater opportunities to participate in China’s economic development and share in the benefits of its growing market.

Ladies and Gentlemen,

Friends,

    As an ancient Chinese saying goes, when an opportunity strikes, one must seize it. Looking back on the more than half-century journey of China-Australia relations, despite twists and turns along the way, both sides have consistently assessed the situation, seized opportunities, sought common ground, and resolved differences. The overarching theme of our bilateral ties has always been mutual benefits. Looking ahead, a healthy and stable China-Australia relationship serves the fundamental interests of both countries and peoples. We should earnestly implement the important common understandings reached by our leaders, work together in the same direction, and strive to make 2026 a year of progress and harvest in China-Australia relations, ensuring that the ship of our bilateral ties stays on course, maintains momentum, and forges steadily ahead.

    First, we should foster a right perception of each other and dispel distractions. The trajectory of China-Australia relations in recent years demonstrates that how we perceive each other and how we handle differences are fundamental to the relationship. China’s stance has been consistent: China and Australia are friends, not adversaries; partners, not competitors. Recent polls by several Australian think tanks show that a majority of Australians support expanding mutually beneficial cooperation with China. This fully reflects the growing consensus in Australia on fostering friendly ties with China and highlights the broad public expectation for such a relationship. However, there remain voices clouded by arrogance and prejudice, viewing China through a distorted lens. Going forward, both sides should continue to enhance strategic mutual trust, work to lengthen the list of cooperation and shorten the list of problems, strive for more progress, and build a more mature, stable, and fruitful China-Australia Comprehensive Strategic Partnership to bring greater benefits to our peoples.

    Second, we should manage differences appropriately and avoid crossing red lines. China and Australia differ in social systems, history, culture, and ideology, and differences in some areas are inevitable. What matters is to respect each other’s core interests and major concerns, adhere to the principles of mutual respect, seeking common ground while reserving differences, and treating each other as equals in addressing differences. China and Australia are fully capable of setting an example of peaceful coexistence and win-win cooperation between countries with different political systems and at different stages of development. Properly handling the Taiwan question is of particular importance to the healthy and stable development of China-Australia relations. The Taiwan question concerns China’s sovereignty and territorial integrity and is at the core of China’s core interests. Achieving the complete reunification of the country is a strong aspiration shared by all Chinese people. There is zero room for compromise and not an inch to give on the Taiwan question. We are ready to work with Australia to respect each other’s concerns, prudently manage differences, exclude external interference, and ensure the sustained, sound, and stable growth of our bilateral relations.

    Third, we should promote deeper convergence of interests with unwavering commitment. The economies of China and Australia are highly complementary, and mutual benefit lies at the very heart of our relationship. China has been Australia’s largest trading partner, largest export destination, and largest source of imports for 17 consecutive years. Last year, bilateral trade exceeded AU$300 billion. Both sides are currently reviewing the China-Australia Free Trade Agreement and exploring its further upgrade. China is ready to better align development strategies with Australia, support Australia’s productivity growth with high-quality development, enhance cooperation in high-speed rail infrastructure, new energy vehicles, and other emerging sectors, and actively foster collaboration in industries of the future, such as artificial intelligence, quantum technology, and life sciences, thus contributing to the “Future Made in Australia” vision.

    Fourth, we should uphold multilateralism with undivided focus. In a world of rising unilateralism and protectionism, China and Australia, as two important countries in the Asia-Pacific region may enhance coordination and build consensus on international and regional issues, strengthen collaboration within multilateral frameworks such as the United Nations, the G20, and APEC, advocate multilateralism, jointly safeguard regional peace and stability, defend the international rules-based order, and inject more stability and certainty into a turbulent world.

Ladies and Gentlemen,

Friends,

    This year is the Year of the Horse in the Chinese lunar calendar. In Chinese culture, the horse is a symbol associated with diligence, progress, and success. Let us draw on its spirited energy, face challenges head-on, seize opportunities, strengthen exchanges, and deepen cooperation with a more proactive and open approach so that China-Australia relations gallop ahead steadily and travel far.

    Thank you!