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Significance

The new ambassador arrived last month and has already indicated Beijing’s desire for a joint effort to “push the China-Australia relations back to the right track” following several years of diplomatic and economic tensions. Canberra will remain sceptical until shown definite changes in Beijing’s approach to bilateral trade.

Impacts

Canberra will continue to build a diplomatic alliance against China, even if it comes at an economic cost.

A Labor government would share the current policy of refusing to rebuild bilateral relations until trade tensions ease.

Australia will try to reduce its economic reliance on China but will struggle to decouple from existing supply chains.

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