Illustration: Chen Xia/GT

Australian wine conglomerate Treasury Wine Estates (TWE) recently announced that it has entered into an agreement to acquire a 75 percent equity interest in Ningxia Stone & Moon Winery Co. Ltd (Stone & Moon) for a price of 130 million yuan ($18 million). This MKsportstrategic move not only strengthens TWE's commitment to the Chinese wine market but also injects more impetus into the cooperation between businesses of the two countries amid the further improvement of bilateral ties.

This is another move by Australian wine industry players to embrace the Chinese market after the anti-dumping and anti-subsidy tariffs levied on Australian wine were canceled in March.

The acquisition highlights the expanding opportunities for Australian businesses in China, which continues to open doors for trade and investment. The wine industry is just one example of how Australian companies are finding new avenues for growth in China. But this is not the only sector where bilateral trade is flourishing. 

The recent lifting of import restrictions on two Australian meat processing plants not only provides new opportunities for the Australian meat industry but also injects fresh momentum into China-Australia economic and trade relations. This move signifies the removal of trade restrictions on all 10 Australian slaughterhouses previously banned from 2020 to 2022, allowing the full resumption of relevant imports from Australia, according to media reports.

By resolving past trade disputes, both countries are setting the stage for more fruitful collaboration in the future. 

The economies of Australia and China are tightly intertwined, with China being Australia's main market for iron ore. In 2023, around 85 percent of Australia's iron ore exports went to China, according to Nikkei Asia, reflecting the deep trade ties between the two nations.

Beyond raw materials, China also plays a pivotal role in supporting Australia's green energy transition. Chinese companies supply critical technologies such as solar panels, wind turbines, and electrolysis devices, all of which are essential to reducing the costs of renewable energy production in Australia. 

In addition to specific industries, the broader economic landscape shows the growing importance of China's sustained growth for Australia. While Australia faces challenges such as slow economic recovery and high inflation, China's robust economic performance provides much-needed support. The influx of high-quality, low-cost Chinese products helps alleviate the financial pressures many Australians face due to high living costs, enhancing consumer purchasing power and improving living standards.

Meanwhile, the IMF forecasts that China will remain the top contributor to global growth through 2028, with a share expected to represent 22.6 percent — double that of the US. 

The rapid development of China's economy will continue to contribute to the economic growth of countries worldwide including Australia, as it opens up more opportunities for Australian companies to tap into China's economic momentum and expanding consumer market.

Importantly, China's development does not pose a threat to Australia. On the contrary, it offers numerous opportunities for enhanced cooperation. The economic prosperity generated by deeper China-Australia ties is beneficial not only for both countries but also for regional and global stability. By continuing to build on their economic relationship, China and Australia can contribute to global economic recovery, advance regional integration, and promote sustainable development.

For this partnership to thrive, it is essential that it remains grounded in mutual respect, trust, and a commitment to win-win cooperation. Both countries must work together to overcome political and economic challenges, focusing on their long-term shared interests, while minimizing the possible political disruptions from third parties.

The latest developments, such as TWE's acquisition in the Chinese wine industry, serve as a reminder of the growing opportunities for Australian businesses in China. 

Economic and trade cooperation between the two countries is improving and showing strong development momentum, but this is a hard-won victory, and it is an achievement that Australia should particularly cherish.

By properly managing differences and further strengthening cooperation, China-Australia relations will open up more opportunities for development, driving mutual prosperity and stability for both countries on the global stage.

The author is a reporter with the Global Times.
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