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Australian Prime Minister Anthony Albanese expressed cautious optimism Thursday about a meeting between U.S. President Donald Trump and Chinese President Xi Jinping, positioning Australia as a diplomatic bridge between the world’s two largest economies even as strategic competition intensifies across the Indo-Pacific.
“We welcome the meeting of the world’s two largest and most powerful countries and economies,” Albanese told reporters in Seoul, where he is attending the Asia-Pacific Economic Cooperation summit. “We are optimistic about a positive outcome.”
The Trump-Xi meeting was scheduled to begin Thursday morning Seoul time, Albanese said, noting that he had spoken with both leaders “in just the last few days.” The Australian prime minister characterized these conversations as “an opportunity for me to engage with them” on relationships he described as “important for Australia.”
Albanese’s diplomatic positioning comes as Australia navigates increasingly complex geopolitical currents, maintaining its decades-old security alliance with Washington while seeking to stabilize its crucial economic relationship with Beijing. China remains Australia’s largest trading partner, while the United States anchors Canberra’s defense and intelligence partnerships.
“The world has an interest in economic activity,” Albanese said. “We live in a globalised world and with a global economy. We want to see less tension in trade and we want to see a positive outcome going forward. We want countries to work together.”
The prime minister pointed to his government’s success in reducing trade friction with China as evidence of Australia’s pragmatic approach. When his Labor government took office in 2022, “the economic relationship with our major trading partner had a range of impediments,” he said. “Those impediments have been removed.”
“That means jobs for Australians, particularly in our regions, in our agricultural sector, but also in our services sector as well,” Albanese added.
Australia has worked for more than two years to restore trade ties with China after Beijing imposed or escalated restrictions on Australian barley, wine, coal, lobster, and other exports during 2020-2021. The restrictions came amid deteriorating bilateral relations following Australia’s call for an independent investigation into COVID-19’s origins and Canberra’s decision to ban Huawei from its 5G network.
Chinese Foreign Ministry officials have confirmed most restrictions have now been lifted, though some analysts note residual barriers remain in certain sectors.
Beyond economic considerations, Albanese emphasized Australia’s interest in regional stability. “We obviously also want to see a reduction in tension around the world,” he said. “The United States and China have an important role as the two major economies and the two major powers that exist in our region and right around the globe.”
The prime minister characterized the current international environment as one of “strategic competition” but suggested recent developments offer hope for de-escalation. “What we are seeing is really positive developments,” he said. “It is a good thing that President Trump and President Xi are meeting today.”
Albanese said he has “developed good, positive relationships with both President Trump and President Xi,” adding that he engages “on Australia’s behalf diplomatically in a way that advances Australia’s national interests because it is in Australia’s national interest for there to be peace and security in our region.”
One reporter asked whether a “positive outcome” for Australia would include specific elements in any U.S.-China trade agreement. Albanese declined to specify, instead emphasizing general principles. “We want to see less tension in trade and we want to see a positive outcome going forward,” he repeated.
When pressed about whether Taiwan might become a negotiating point in Trump-Xi discussions, Albanese reiterated Australia’s established position. “We support the status quo when it comes to Taiwan and its status,” he said. “That’s a long-standing bipartisan position that Australia has had.”
“We have a bipartisan position for the one China policy, but we also don’t want to see any unilateral action,” he added, referencing Australia’s policy of acknowledging Beijing’s position that Taiwan is part of China while opposing any forceful reunification attempt.
The Taiwan Strait remains one of the world’s most sensitive geopolitical flashpoints. Beijing has increased military pressure on the self-governing island, while Washington has deepened unofficial ties with Taipei and continues arms sales despite lacking formal diplomatic relations.
Albanese’s comments came during a media conference in Seoul, where he had dined the previous evening with Trump and six other national leaders at an intimate gathering hosted by South Korea’s president. The Australian prime minister occupied the seat at Trump’s right hand during the two-hour dinner.
The prime minister’s dual engagement with Washington and Beijing reflects Australia’s delicate balancing act. Canberra is proceeding with the AUKUS agreement to acquire nuclear-powered submarines from the United States and United Kingdom while simultaneously working to maintain stable economic ties with China, which purchases roughly one-third of Australia’s exports.
Trade statistics underscore Australia’s economic dependence on regional stability. “One in four of Australia’s jobs depends upon trade,” Albanese said. “Over 75% of Australia’s trade is with APEC members.”
Asia-Pacific Economic Cooperation brings together 21 Pacific Rim economies, including the United States, China, Japan, South Korea, and all 10 members of the Association of Southeast Asian Nations. The forum accounts for approximately 60 percent of global GDP and 50 percent of world trade.
Albanese is scheduled to attend APEC’s main leaders’ meeting Friday, where he will conduct additional bilateral discussions. Foreign Minister Penny Wong is also in Seoul conducting parallel meetings with her counterparts.
Asked about his assessment of global tensions, Albanese acknowledged challenges while emphasizing diplomatic progress. “We live in an era of strategic competition,” he said. “But what we are seeing is really positive developments.”
The prime minister previously characterized the current period as potentially the most dangerous strategic environment since World War II. Thursday, he suggested that while competition persists, diplomatic engagement offers pathways toward stability.
“It is in Australia’s national interest for there to be peace and security in our region, for there to be economic engagement,” Albanese said.
Australia’s diplomatic efforts extend beyond the Trump-Xi meeting. Albanese’s Seoul schedule includes a visit to POSCO, the South Korean steel conglomerate that imported 18.2 billion Australian dollars worth of Australian resources last year, making it Australia’s single largest commercial partner.
“These relationships are important for our economy and for jobs,” Albanese said. “They, of course, are also important for our security and for peace in the region as well.”
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Albanese’s diplomatic positioning comes as Australia navigates increasingly complex geopolitical currents, maintaining its decades-old security alliance with Washington while seeking to stabilize its crucial economic relationship with Beijing. China remains Australia’s largest trading partner, while the United States anchors Canberra’s defense and intelligence partnerships.
“The world has an interest in economic activity,” Albanese said. “We live in a globalised world and with a global economy. We want to see less tension in trade and we want to see a positive outcome going forward. We want countries to work together.”
The prime minister pointed to his government’s success in reducing trade friction with China as evidence of Australia’s pragmatic approach. When his Labor government took office in 2022, “the economic relationship with our major trading partner had a range of impediments,” he said. “Those impediments have been removed.”
“That means jobs for Australians, particularly in our regions, in our agricultural sector, but also in our services sector as well,” Albanese added.
Australia has worked for more than two years to restore trade ties with China after Beijing imposed or escalated restrictions on Australian barley, wine, coal, lobster, and other exports during 2020-2021. The restrictions came amid deteriorating bilateral relations following Australia’s call for an independent investigation into COVID-19’s origins and Canberra’s decision to ban Huawei from its 5G network.
Chinese Foreign Ministry officials have confirmed most restrictions have now been lifted, though some analysts note residual barriers remain in certain sectors.
Beyond economic considerations, Albanese emphasized Australia’s interest in regional stability. “We obviously also want to see a reduction in tension around the world,” he said. “The United States and China have an important role as the two major economies and the two major powers that exist in our region and right around the globe.”
The prime minister characterized the current international environment as one of “strategic competition” but suggested recent developments offer hope for de-escalation. “What we are seeing is really positive developments,” he said. “It is a good thing that President Trump and President Xi are meeting today.”
Albanese said he has “developed good, positive relationships with both President Trump and President Xi,” adding that he engages “on Australia’s behalf diplomatically in a way that advances Australia’s national interests because it is in Australia’s national interest for there to be peace and security in our region.”
One reporter asked whether a “positive outcome” for Australia would include specific elements in any U.S.-China trade agreement. Albanese declined to specify, instead emphasizing general principles. “We want to see less tension in trade and we want to see a positive outcome going forward,” he repeated.
When pressed about whether Taiwan might become a negotiating point in Trump-Xi discussions, Albanese reiterated Australia’s established position. “We support the status quo when it comes to Taiwan and its status,” he said. “That’s a long-standing bipartisan position that Australia has had.”
“We have a bipartisan position for the one China policy, but we also don’t want to see any unilateral action,” he added, referencing Australia’s policy of acknowledging Beijing’s position that Taiwan is part of China while opposing any forceful reunification attempt.
The Taiwan Strait remains one of the world’s most sensitive geopolitical flashpoints. Beijing has increased military pressure on the self-governing island, while Washington has deepened unofficial ties with Taipei and continues arms sales despite lacking formal diplomatic relations.
Albanese’s comments came during a media conference in Seoul, where he had dined the previous evening with Trump and six other national leaders at an intimate gathering hosted by South Korea’s president. The Australian prime minister occupied the seat at Trump’s right hand during the two-hour dinner.
The prime minister’s dual engagement with Washington and Beijing reflects Australia’s delicate balancing act. Canberra is proceeding with the AUKUS agreement to acquire nuclear-powered submarines from the United States and United Kingdom while simultaneously working to maintain stable economic ties with China, which purchases roughly one-third of Australia’s exports.
Trade statistics underscore Australia’s economic dependence on regional stability. “One in four of Australia’s jobs depends upon trade,” Albanese said. “Over 75% of Australia’s trade is with APEC members.”
Asia-Pacific Economic Cooperation brings together 21 Pacific Rim economies, including the United States, China, Japan, South Korea, and all 10 members of the Association of Southeast Asian Nations. The forum accounts for approximately 60 percent of global GDP and 50 percent of world trade.
Albanese is scheduled to attend APEC’s main leaders’ meeting Friday, where he will conduct additional bilateral discussions. Foreign Minister Penny Wong is also in Seoul conducting parallel meetings with her counterparts.
Asked about his assessment of global tensions, Albanese acknowledged challenges while emphasizing diplomatic progress. “We live in an era of strategic competition,” he said. “But what we are seeing is really positive developments.”
The prime minister previously characterized the current period as potentially the most dangerous strategic environment since World War II. Thursday, he suggested that while competition persists, diplomatic engagement offers pathways toward stability.
“It is in Australia’s national interest for there to be peace and security in our region, for there to be economic engagement,” Albanese said.
Australia’s diplomatic efforts extend beyond the Trump-Xi meeting. Albanese’s Seoul schedule includes a visit to POSCO, the South Korean steel conglomerate that imported 18.2 billion Australian dollars worth of Australian resources last year, making it Australia’s single largest commercial partner.
“These relationships are important for our economy and for jobs,” Albanese said. “They, of course, are also important for our security and for peace in the region as well.”
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