What We're Watching
Are China-Australia ties boomeranging back?
Australia's Prime Minister Anthony Albanese meets with China's President Xi Jinping at the Great Hall of the People in Beijing, China, November 6, 2023.
AAP Image/Lukas Coch via REUTERS
Anthony Albanese is the first Australian prime minister to visit Beijing since 2016, as both sides signal their readiness to work on their long-running rift. At a meeting on Monday in the Great Hall of the People, Chinese President Xi Jinping said, “the China-Australia relationship has embarked on the right path of improvement and development” after years of trade spats and accusations of political meddling.
As the satirical Australian series “Utopia” illustrates, Canberra has to walk a fine line. China accounts for over a third of Australian trade, and is willing to use that leverage in political disputes. In 2020, when then-Prime Minister Scott Morisson called for an investigation of China’s role in the origin of the COVID-19 virus, Beijing slapped import restrictions on Australian agricultural products. Those remain in place, despite the thaw.
Australians clearly feel threatened by China, after allegations of political interference led Canberra to ban foreign political donations in 2017 and Huawei communications technology in 2018. In a poll this year, 75% of the population say they see China as a military threat in the coming years.
The visit with Albanese seems further proof Beijing has accepted that its aggressive diplomatic tack in the late 2010s was unsustainable. It also bodes well for the summit between Xi and President Biden at the Asia-Pacific Economic Cooperation meeting next week in San Francisco, though the Taiwanese elections in January still loom large in the US-China dynamic.Mastercard Economic Institute's Outlook 2026 explores the forces redefining global business. Tariffs, technology, and transformation define an adaptive economy for the year ahead. Expect moderate growth amid easing inflation, evolving fiscal policies, and rapid AI adoption, driving productivity. Digital transformation for SMEs and shifts in trade and consumer behavior will shape strategies worldwide. Stay ahead with insights to help navigate complexity and seize emerging opportunities. Learn more here.
Think you know what's going on around the world? Here's your chance to prove it.
Less than one day after US President Donald Trump declared a military blockade of sanctioned oil tankers from Venezuela, he addressed the nation during a rare primetime speech – but didn’t talk about Venezuela.
Indian Prime Minister Narendra Modi isn’t necessarily known as the greatest friend of Muslim people, yet his own government is now seeking to build bridges with Afghanistan’s Islamist leaders, the Taliban.