Australian Prime Minister Anthony Albanese wrapped up a significant state visit to China with a symbolic stop at a panda breeding facility in Chengdu, underscoring warming ties and shared economic interests between the two nations. The week-long trip, ending Friday, marked a notable thaw in Australia-China relations, with both countries positioning themselves as defenders of global free trade against looming U.S. tariff policies.

Panda Diplomacy in Focus

On Thursday, Albanese and his fiancée Jodie Haydon visited the Chengdu facility, where they met Fu Ni, a giant panda previously on loan to Adelaide Zoo. Describing Fu Ni as “a great ambassador for China and a friend of Australia,” Albanese highlighted the cultural bridge pandas represent. Last year, Chinese Premier Li Qiang announced that Fu Ni and her mate Wang Wang would be succeeded by a new pair, Xing Qiu and Yi Yan, now a major draw at Adelaide Zoo. Australia remains the only Southern Hemisphere nation entrusted with China’s iconic pandas, a gesture of diplomatic goodwill.

Rebuilding Bilateral Ties

The extended visit, one of the longest Australian state trips in a decade, signals a reset in relations strained under the previous government. Tensions peaked in 2020 when China imposed trade barriers worth AUD 20 billion ($13 billion) annually on Australian goods like wine and coal, retaliating against Australia’s call for a COVID-19 origins inquiry and restrictions on Huawei’s 5G involvement. Since Albanese’s Labor Party took office in 2022, these barriers have been lifted, paving the way for renewed cooperation under the 2015 bilateral free trade agreement.

A United Front on Trade

In Beijing, Chinese President Xi Jinping urged Albanese to maintain “equal treatment and cooperation” to safeguard mutual interests, a veiled reference to U.S. tariff threats under President Donald Trump. Albanese reaffirmed Australia’s commitment to “free and fair trade,” noting the U.S.’s minimal 10% tariff on Australian imports but warning of broader economic risks from a potential Chinese downturn triggered by U.S. policies. China, absorbing a third of Australia’s exports, remains a critical trade partner.

James Laurenceson of the Australia-China Relations Institute described the alignment as pragmatic rather than ideological. “Australia and China share an interest in preserving the current trade system, while the U.S. is stepping away,” he said, emphasizing that the visit reflects a growing divergence with Washington rather than a pivot toward Beijing.

Political Balancing Act

Albanese faced domestic criticism for his frequent meetings with Xi—four in total, including two in Beijing—while yet to meet Trump in person, though a planned G7 summit encounter fell through. Albanese noted three “constructive” phone calls with Trump and expressed optimism for a future meeting. His government’s focus remains on balancing robust trade ties with China while navigating U.S. relations amid global economic uncertainties.

A Forward-Looking Partnership

Albanese’s visit, blending cultural gestures like panda diplomacy with high-stakes trade discussions, underscores a strategic effort to strengthen Australia’s position in a shifting global landscape. By fostering mutual respect and economic collaboration, both nations aim to counter external pressures and ensure stability in their vital partnership.