Wang's visit to Australia, his first as foreign minister since 2017, comes as the two countries enjoy easier trade relations despite sparring over human rights and China's growing diplomatic and military clout in the Pacific region.
"I think it is a good thing that Wang Yi is visiting," Prime Minister Anthony Albanese told reporters Thursday, citing "significant progress" in removing trade impediments.
The Chinese minister is scheduled to hold "strategic dialogue" talks with Foreign Minister Penny Wong in Canberra on March 20.
"We seek to cooperate with China where we can, disagree where we must and engage in our national interest," Wong said in a statement.
"It's Australia's view that a stable bilateral relationship would enable both countries to pursue respective national interests, if we navigate our differences wisely."
Australia's trade relations with China have improved since Albanese's centre-left Labor Party won government in 2022, adopting a less confrontational tone than the previous conservative government.
China had imposed tariffs and trade barriers on key Australian exports in 2020, angered after Canberra barred Huawei from 5G contracts and then called for a probe into the origins of the Covid-19 pandemic.
- 'Outrage' -
Beijing has already unwound tariffs and restrictions on Australian coal, timber and barley, and it is expected to do the same for Australian wine.
Melbourne-based Treasury Wine Estates said this week it had been advised by Chinese and Australian authorities of Beijing's "interim draft determination" to remove the wine tariffs following a five-month review.
It expected a final decision "in the coming weeks".
Albanese made a breakthrough trip to Beijing in November 2023, hailing progress in the two countries' ties as "unquestionably very positive".
But the two countries remain at odds in strategic areas.
Last month, Australia's government said it had expressed its "outrage" after Beijing handed a suspended death sentence to Chinese-Australian dissident writer Yang Jun.
Wong warned at the time that such decisions would "have an impact" on the relationship.
Overseas, Australia and its allies are seeking to parry China's expanding reach in the South Pacific.
Canberra and Washington were jolted into action after Beijing signed a secretive security deal with Solomon Islands in 2022.
Australia also supports the US and Asian countries in opposing Beijing's sovereignty claims over the South China Sea.
If wine tariffs are removed, only Australian rock lobster, hay and beef from some abattoirs will be subject to Chinese trade restrictions.
Australian wine industry toasts expected end to China tariffs
Sydney (AFP) Mar 13, 2024 -
The Australian wine industry welcomed news on Wednesday that China could begin lifting punitive tariffs within weeks, raising hopes that the country's red wine glut will soon ease.
China imposed tariffs on key Australian exports such as wine, barley and beef in 2020, after Canberra legislated against overseas influence, barred Huawei from 5G contracts and called for a probe into the origins of the Covid-19 pandemic.
But trade restrictions have tapered since Australia's centre-left government won the election in 2022 and adopted a less confrontational approach.
Melbourne-based Treasury Wine Estates said on Wednesday that it had been advised by Chinese and Australian authorities of Beijing's "interim draft determination" to remove the tariffs following a five-month review.
China's Ministry of Commerce is expected to make a final decision "in the coming weeks", according to the global wine giant, which owns the Penfold label.
Tariffs and barriers have already tumbled for commodities, including Australian coal, timber and barley.
If wine tariffs are removed, only Australian rock lobster, hay and beef from some abattoirs will be subject to Chinese trade restrictions.
Beijing's foreign ministry declined to confirm if the tariffs would be lifted, but said it was "willing to continue to strengthen dialogue and cooperation with Australia based on the principles of mutual respect".
"China and Australia have gone through dialogue and consultation to properly resolve each other's concerns, jointly promoting momentum for improving and developing bilateral ties," ministry spokesperson Wang Wenbin told a regular briefing.
Treasury Wine Estates chief executive Tim Ford said he was hopeful.
"This is subject to change, however we're optimistic that the final determination will be a positive outcome for the Australian wine industry," he said.
- Too much red wine -
Before the trade restrictions were imposed, China was the largest destination for Australian bottled wine, accounting for 33 percent of export revenue in 2020, data from the Australian government shows.
The tariffs added up to 200 percent to the cost of Australian wine imported into China, and effectively halted an industry worth $1 billion per year.
Australian winemakers responded by turning to other Asian markets, including Hong Kong and Thailand.
Tim Mableson, a market analyst at consultancy KPMG, said Australia now has an oversupply of red wine, which would be eased by the reopening of China's export market.
But he cautioned that globally wine consumption has declined.
"The assumption that the market will return to or be the same level as before should be still treated with some caution by some producers," Mableson said.
"If we don't adjust levels of production, then ultimately we won't be able to address the oversupply."
Industry body Grape and Wine's chief executive Lee McLean welcomed the indication of tariff relief.
"We appreciate the collaborative efforts from both the Australian and Chinese governments, and industry partners, in working towards a resolution," he said.
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