Australia is actively expanding its trade relations with China in the realm of green technology and electric vehicles, even as the United States and European Union impose tariffs on Chinese imports. On October 15, 2024, Australian Prime Minister Anthony Albanese emphasized the importance of maintaining institutional dialogue with China, highlighting that China remains Australia's largest trading partner and is crucial for Australia's green transition [cb5d0e3c].
Despite a drop in Chinese investment in Australia to $613 million in 2023, there are signs of recovery as Chinese firms engage in significant renewable energy projects, including a 60MW battery system and a 500MW solar farm. This collaboration is seen as vital for addressing Australia's underdeveloped energy infrastructure, which poses challenges to achieving a sustainable energy future [cb5d0e3c].
The Shanghai New Energy Industry Association is set to collaborate with Australia's Smart Energy Council starting in 2025, signaling a commitment to fostering partnerships in the green tech sector [cb5d0e3c]. However, the potential for cooperation may be hindered by rising protectionist tendencies in both regions, which could complicate trade dynamics [cb5d0e3c].
In contrast to the restrictive measures from the U.S. and EU, Australia's approach reflects a strategic pivot towards enhancing its green technology capabilities through partnerships with China, aiming to leverage Chinese expertise and investment to bolster its renewable energy initiatives [cb5d0e3c].