Marles opens door to deal on free trade
In a hasty visit to Beijing designed to capitalise on the renewed impetus between Prime Minister Kevin Rudd and Chinese President Xi Jinping for an "early conclusion" to the protracted free trade talks, Mr Marles said "everything is on the table" with respect to a new proposal his negotiating team would put to Chinese officials this week.
He said compromise was needed to ensure an agreement would be reached, and provide free market access to Australia's largest trading partner, something he said was particularly important as Australia expanded its economic relationship beyond resources and into goods and services consumed by China's rising middle class.
"The ground that we are ceding today is in relation to access to the greatest market in the world," he said in Beijing on Wednesday.
"Part of being practical about this is agreeing what we can agree and putting to one side others [where we can't]," he said.
Mr Marles acknowledged China's main point of contention has long been its desire for fewer regulatory hurdles for investments by state-owned enterprises and better access to Australia's resources sector.
Mr Marles met vice-premier Wang Yang, commerce minister Gao Hucheng, and the head of sovereign wealth fund China Investment Corporation, Ding Xuedong.
Mr Rudd has made it a priority for his government to resuscitate the stalled talks. The two sides have failed to reach an agreement despite 19 rounds of talks since 2005.
Mr Rudd said "Australia places great importance on the Australia-China free trade agreement negotiations". Mr Xi said he hoped the two sides could use flexibility and creativity to "resolve the issues of each other's concern".
Frequently Asked Questions about this Article…
Marles said Australia may be prepared to make compromises on its investment rules to help clinch an Australia–China free trade agreement. In Beijing he indicated his team would put a new proposal to Chinese officials and that 'everything is on the table' to reach a deal.
According to the article, a successful agreement would provide freer market access to Australia’s largest trading partner and help expand economic ties beyond resources into goods and services consumed by China’s growing middle class—potentially opening new markets for Australian exporters and service providers.
The article says China’s main points of contention include fewer regulatory hurdles for investments by state-owned enterprises (SOEs) and improved access to Australia’s resources sector.
Marles met with senior Chinese officials including vice‑premier Wang Yang, commerce minister Gao Hucheng, and Ding Xuedong, head of the China Investment Corporation (the country’s sovereign wealth fund).
The article notes the talks have been protracted, with 19 rounds of negotiations since 2005. Marles’ Beijing visit was described as the strongest indication yet that Australia might make concessions to reach an 'early conclusion' to the stalled talks.
Mr Rudd made reviving the stalled talks a government priority, and Mr Xi said he hoped both sides could use flexibility and creativity to 'resolve the issues of each other’s concern,' signalling willingness on both sides to negotiate.
These negotiations could change the investment landscape by altering access for foreign investors—especially Chinese SOEs—and by opening new export opportunities in goods and services. That could affect sectors tied to resources, trade flows, and companies targeting Chinese consumer demand.
Based on the article, investors should watch for new proposals from Australia’s negotiating team, any announced compromises on investment restrictions or resource access, and official progress updates following high‑level meetings between Australian and Chinese leaders and ministers.
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