Australia has rejected China’s invitation to form a united front on trade matters, following Beijing’s appeal for closer cooperation to counter rising US tariffs, which have now soared to 125 percent on Chinese goods.
China’s ambassador to Australia, Xiao Qian, made the overture in an opinion piece published in the Sydney Morning Herald, urging Canberra and other trade partners to “join hands” with Beijing in responding to shifting global dynamics.
“Under the new circumstances, China stands ready to join hands with Australia,” Xiao wrote, suggesting collaboration to navigate global trade disruptions.
However, Australia’s Defence Minister Richard Marles swiftly dismissed the proposal, making it clear that Canberra has no intention of aligning with Beijing on trade issues.
“We’re not about to make common cause with China,” Marles told Nine News. “I don’t think we’ll be holding China’s hand.”
While he emphasised that Australia does not support a trade war between the United States and China, Marles reiterated Canberra’s priority of diversifying its trade relationships rather than deepening ties with China.
Australia maintains a delicate balancing act: it is one of the United States’ most dependable security allies in the Indo-Pacific, a region increasingly shaped by China’s growing military and economic influence. Yet, China remains Australia’s largest trading partner.
Despite the longstanding alliance, Australian exports to the United States have not been spared. Canberra has been hit with a blanket 10 percent tariff, prompting some lawmakers to question why Washington would penalise a key ally.
US President Donald Trump temporarily paused the steepest tariffs on most nations on Wednesday, acknowledging concerns about market volatility. However, he pressed ahead with more aggressive measures against China, citing a “lack of respect” as the reason for escalating tariffs to 125 percent.
Tariffs on Australian goods, however, remain unchanged.
