Panda pledge as China, Australia toast thaw in ties

Premier Li Qiang mixed a dash of "panda diplomacy" with a visit to a historic vineyard to celebrate a thaw in once-icy trade ties with Australia.

Li, the highest-ranking Chinese official to visit Australia in seven years, is on a four-day trip that offers the prospect of greater trade after Beijing lifted punitive measures against a string of major Australian exports.

China is Australia's biggest trade partner, taking in 30 percent of its exports last year including major commodities iron ore and coal. Two-way trade hit A$327 billion (HK$1.68 trillion) in 2023.

Setting the warmer tone, Li took a trip to Adelaide Zoo in bright sunshine and announced China would loan new "adorable" giant pandas to replace popular pair Wang Wang and Fu Ni, who have failed to produce offspring since their arrival in 2009 and will return by the end of the year.

"I guess they must have missed their home a lot," said Li.

He said China made the panda offer to honor the wishes of foreign minister Penny Wong, who has worked to stabilize ties with Beijing.

Wine was among a string of Australian exports, along with coal, timber, barley, beef, and lobsters, battered by Chinese sanctions in 2020 during a rift with the former conservative government.

Those sanctions cost Australian exporters an estimated A$20 billion a year, including A$1 billion for the wine industry. The tariffs have been gradually lifted since Prime Minister Anthony Albanese's government took power in 2022.

Li and Albanese are set to hold talks in Canberra today, encompassing fractious issues of foreign influence, human rights, alleged "unsafe" behavior by China's military in the region, and their rivalry in the Pacific.

China's growing clout in the South Pacific, where it seeks to expand ties with island states traditionally allied with Australia, remains a notable point of tension.

"We're in a state of permanent contest in the Pacific. That's the reality," Wong said.

But Li, who will also head to a lithium mine in Perth, is focusing his attention on economic opportunities despite areas of friction.

"Mutual respect, seeking common ground while shelving differences" are key to the relationship, said Li.