Overview:
China is signaling a possible return to fuel exports as Penny Wong intensifies diplomatic efforts in Beijing to secure supplies for Australia. While talks with Wang Yi have opened the door for negotiations between Chinese oil firms and Australian businesses, officials warn this is only an early step amid ongoing global energy disruptions linked to the Middle East conflict.
By foreign affairs correspondent Stephen Dziedzic
In short:
(ABC-Australia) The Chinese government is working with Australian businesses on jet fuel supplies, Foreign Minister Penny Wong has confirmed.
Beijing restricted jet fuel and diesel exports after the Iran war broke out.
What’s next?
Senator Wong says it’s only the “first step” to secure more fuel supplies for Australia.
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Foreign Minister Penny Wong says Chinese state-owned oil companies have agreed to negotiate directly with Australian companies on jet fuel as the government presses Beijing to lift export curbs.
Senator Wong sat down with her Chinese counterpart Wang Yi late yesterday for annual talks as she continues a regional tour aimed at shoring up fuel supplies as the Middle East war continues to disrupt the global market.
The foreign minister told journalists in Beijing, China had agreed to “facilitate engagement” with Australian businesses on jet fuel, although she provided little detail on what shape that would take.
“I can confirm the Chinese government is facilitating engagement with Australian businesses on jet fuel,” she said during a press conference in Beijing.
“This is an important step; however, it is the first step.”
“The whole reason I’m here is to try and press for, and advocate for, Australia’s interests and for the provision of liquid fuels.”
Fuel exports to resume as China’s own needs stabilise
China is a major exporter of jet fuel and diesel to Australia but has pulled back exports since the start of the Middle East war to protect its own domestic supplies.
The Financial Times reported yesterday China was poised to resume much higher exports of jet fuel, gasoline and diesel from May, saying Beijing was more confident that its own fuel needs were stabilising.
While she would not be drawn on what steps she thought China would take, Senator Wong said she would keep “advocating for Australian businesses and the Australian economy to have access to liquid fuels”.
She repeated her message that major Asian countries needed to keep Australia supplied with fuel if they wanted to ensure it would continue to send the critical food and energy exports.
“I’ve repeatedly said, we see mutual benefit in that occurring given how those inputs contribute to Australia’s reliability as a supplier to the region,” she said.
“The inputs China provides to Australia, including aviation fuel, support Australia’s resources sector, which in turn helps to maintain the flow of commodities which underpin our bilateral trading relationship.”
Senator Wong will visit South Korea on Thursday on her regional tour, where she is once again expected to hammer home a similar message.
The foreign minister met with her Japanese counterpart, Toshimitsu Motegi, the minister of trade, economy and industry, Ryosei Akazawa, and the minister of economic security, Kimi Onoda, and other senior ministers in Tokyo on Tuesday.
China uneasy about Australia’s closer ties with Japan
China has signalled it is uneasy about Japan’s rapidly burgeoning security ties with Australia.
Senator Wong seemed to confirm Chinese Foreign Minister Wang Yi raised concerns on the topic when she was asked about it at the press conference.
“We spent quite a number of hours obviously, so there were a lot of topics to discuss,” Senator Wong said.
“You would anticipate that regional security is one of the issues that was discussed.
“We have a very clear view, we have a special strategic partnership with Japan.
“That is an important partnership to us, and it is a partnership which is directed at working together for shared prosperity, for peace and stability in the region.”
The two sides also discussed the Pacific, where China and Australia are locked in a fierce battle for influence.
According to a statement from the Chinese foreign ministry, Mr Wang told Penny Wong China’s “friendly cooperation with Pacific Island countries” was “not directed at any third party” and that Australia should “view this objectively and rationally”.
The ministry said Senator Wong responded by saying Australia “does not exclude any country from cooperating with [the Pacific] on development” — a line the Australian government often uses to indicate it does not believe China should play a security role in the Pacific.
In a comment seemingly in reference to Chinese nationals facing foreign interference charges in Australia, China’s foreign ministry also said Mr Wang “expressed hope that Australia would effectively safeguard the safety and legitimate rights and interests of Chinese people”.
Earlier, the foreign minister’s talks with China’s Vice President Han Zheng were briefly interrupted when a Chinese official blocked an Australian government photographer who was filming Senator Wong’s opening remarks as media were ushered out of the room.
Multiple reporters said the move created palpable tension in the room and drew protests from an Australian government official who insisted the photographer should be able to continue filming.
On social media Senator Wong said she and Mr Wang also spoke about “areas of difference, including consular issues, human rights, foreign interference, and regional security”.