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It has been more than three years since Queensland grazier Steve Keating sent his last shipment of Wagyu beef to China.
Key points:
- Australia's trade with China was worth $17 billion in 2021-2022
- Experts say Australian companies are "doubling down" on their desire to trade with China
- China's Consul-General recently visited Toowoomba to discuss trade opportunities
The Chinchilla-based producer is eager to get his exports back on track after spending a long time building relationships with Chinese clients.
"Our clients have met our family, they know where we live and what we do," Mr Keating said.
"They've seen our land and they see our pristine environment, and they're really impressed with what we do and how we do it."
Despite the trade spat between the countries and ongoing tension over the AUKUS deal, experts believe Australian businesses are "doubling down" on doing trade with China.
'Glory days' are over
Australian National University Professor of Economics Jane Golley said the "glory days" of the China-Australia relationship were over, but trade between the two countries remained robust.
She believed trade would decline in the long-term, but companies and state governments were looking to increase their business in China.
Her remarks come as Victorian Premier Daniel Andrews visits China on a four-day trip, making him the first Australian politician to visit the country since the AUKUS submarine deal was signed.
The premier said a focus of the trip would be increasing the number of Chinese students studying in Victoria, of which there are about 42,000.
"The New South Wales government have recently established another senior trade commissioner in Shanghai," Professor Golley said.
"They're doubling down at the state level and thinking, 'We need the Chinese — we need to be exporting to China for our growth.'"
Hard to say goodbye
Professor Golley said despite the federal government's efforts to strengthen ties with other trading partners such as India, companies found it difficult to walk away from the Chinese market.
"Diversification — it makes sense, given the political posturing, and I'm sure the government is finding ways to encourage it," she said.
"[But even if] you add India, you add Japan and Indonesia and Vietnam, you'll have to keep on adding and adding and adding to get anywhere near the size of the Chinese market."
Professor Golley said the situation, which has been satirised by the TV series Utopia, posed a "huge conundrum" for the Australian government.
"My take on the Australian government's line is that they must think that they can have their cake and eat it," she said.
"They can push back on China on the security side, but then reassure people that the trade and investment will continue."
Professor Golley said the economic impact of cutting ties with China was rarely discussed as policies shifted.
"People don't want to talk about what will happen if we don't trade with China, because it's a pretty obvious endpoint — that is lower growth and job losses here."
Trade opportunities
The interest in reviving trade seems to go both ways — the Brisbane-based Chinese Consul-General Ruan Zongze recently visited Toowoomba, the Sunshine Coast and the Gold Coast to discuss trade opportunities.
Toowoomba Mayor Paul Antonio said he hoped the visit would build on the city-sister relationship with Shaoxing, in the Yuecheng District.
"That was done pre-COVID outbreak and so, consequently, there hasn't been much happening in recent times," he said.
"But there would be a chance now that we can get things going and keep growing."
Cr Antonio said his vision was for Darling Downs producers to send produce to China and have high-value products flown back to Toowoomba.
"We're pretty happy with where we are," he said.
"We look forward to a more complete arrangement between the two areas."
Mr Keating said despite the uncertain political climate, China was still an attractive option.
"You can't not think about it and you can't not take notice of it," he said.
"But we've got guarantees from our clients and we've got a really good understanding and a good relationship.
"At the moment, we've just got to deal with what we've gotten and try and keep pushing forward."