campusreview . com . au policy & reform
as is encouraging medical and research exchanges between the two countries .
The report ’ s suggestion to reform and upgrade the WTO rules , “ which have been a source of global trade friction ”, is perhaps the main recommendation to receive a backlash , or at least reservations , from Beijing .
Relationship reset
Could a joint Australia-China response to coronavirus heal relations ?
By Wade Zaglas
As Australia ’ s biggest trading partner ,
resetting tense political and trade relations between Australia and
China is a key priority for Australia . And , according to a recent report , both countries collaborating to address both the health and economic challenges caused by the COVID-19 pandemic could act as a “ circuit breaker for the failing Australia- China political relationship ”.
The joint report , authored by The Australia National University ’ s ( ANU ) East Asian Bureau of Economic Research ( EABER ) and China ’ s Center for International Economic Exchange ( CCIEE ), makes a convincing case that both countries could “ co-ordinate Asia ’ s response to the coronavirus crisis ”.
More than 12 researchers from both countries were involved in the study , led by head of EABER Professor Peter Drysdale , and Zhang Xiaoqing , executive director of CCIEE , and formerly vice minister of China ’ s National Development Reform Commission .
“ A key feature of the Australia-China bilateral economic relationship during the global pandemic has been the growth in importance of trade between the two countries ,” the paper states .
“ China has recently accounted for as much as 46 per cent of all Australia ’ s merchandise exports .
“ The deepening economic interdependence is enormously beneficial to both countries but stands in marked contrast to the deterioration of the bilateral political relationship that has coincided with increased uncertainty in the international political environment .”
In a stark yet realistic warning , the report says that China ’ s foreign investment and trade in services such as education , tourism and others “ will not automatically revert to pre-pandemic levels without work to repair the fracture in the relationship ”.
Focusing on 10 key areas , the report outlines a co-operative strategy between the two countries in tackling and recovering from the COVID-19 health and economic crisis in the Asian region . Some of these areas include a “ doubling down ” on support for the World Health Organization ’ s ( WHO ) work , and the production of and access to vaccines and treatments .
Three other major areas include committing to food security through open trade agreements , finalising the Regional Comprehensive Economic Partnership , and establishing “ a system of health certification to travel ”.
Broadening ASEAN + 3 ’ s commitment to a COVID-19 ASEAN Response Fund to include Australia , New Zealand and India is also recommended in the report ,
Why Asia ? The importance of reconstruction and recovery in Asia is cogently argued in the study .
“ Because of their weight and potential in the world economy , Asian economies are central to recovery from the COVID-19 crisis . Struck first by the virus , they are positioned to restart their economies sooner ,” the report says .
“ Asia can help lead the exit from the crisis and be a vital source of global economic recovery .
“ Asia should be seen as the hub from which confidence in global trade and investment can be restored . Asia has the largest stake in the international trade system and the biggest potential to resurrect it .”
Australia and China share strong interests in ensuring public health and safety , financial stability and open , rules-based trade in the region .
Report co-author , Professor Peter Drysdale from ANU , believes the collapse in bilateral political relations between the two countries can be rebuilt “ through a commitment to peace , prosperity and a rules-based order ”.
“ In the aftermath of COVID-19 , Australia and China share strong interests in ensuring public health and safety , financial stability and open , rules-based trade in the region ,” he said .
“ Both governments can contribute towards these goals most effectively by working actively together in multilateral settings such as the ASEAN + 6 group , the East Asia Summit , APEC and the G20 .
“ Australia and China could find it helpful to look to joint commitment to cooperation with partners in Asia for the circuit breaker needed to begin repair in their bilateral relationship .” ■
13